Listeners, welcome to Taiwan Tariff News and Tracker for Wednesday, September 24, 2025.

Just yesterday, the Taiwanese Cabinet announced it will extend preferential tariffs and tax reductions on key commodities like soybean, wheat, corn, butter, milk powder, and frozen beef until March 2026. These policies, first introduced in 2021 to keep inflation in check, mean that imported wheat, butter, and milk powder remain tariff-free, while frozen beef benefits from a 50 percent tariff cut. Gasoline and diesel also have ongoing commodity tax reductions—NT$2 and NT$1.5 per liter respectively—and Portland cement keeps its 50 percent tax cut. The Cabinet noted that while prices for some raw materials have steadied, items like butter and frozen beef are still high, prompting a 16th round of these measures to boost consumer power and lower operating costs for businesses. Inspections by Taiwan’s Department of Consumer Protection ahead of the Mid-Autumn Festival revealed that over half of moon cake prices are unchanged or slightly lower than last year, with any increases kept below 10 percent.

Turning to global headlines, the S&P Global Ratings tariff tracker reports the average trade-weighted effective tariff rate globally was 16.9 percent as of September 9, down slightly from late August.

Now, for the heart of today’s update—U.S. tariff policy and Taiwan under the Trump administration. In his second term, President Donald Trump has shaken up trade relations worldwide. According to the Hudson Institute and recent policy reports, on April 2, Trump announced a "reciprocal tariff" of 32 percent on Taiwanese goods, but crucially excluded semiconductors—the backbone of Taiwan’s export economy—from new tariffs. This move followed Trump’s vocal criticism that Taiwan’s semiconductor sector was gaining an unfair advantage in the U.S. market while, in his view, not contributing enough to its own defense spending.

The uncertainty from these tariffs has deeply impacted the Taiwanese economy, especially for industries outside semiconductors. Business leaders in Taipei are now grappling with how to adjust to the U.S. protectionist stance, while government officials reaffirm their dedication to leadership in semiconductor technology. Trump’s policies appear to be part of a broader push for reciprocal deals and stronger U.S. leverage in strategic sectors, particularly as China and other East Asian nations seek deeper collaboration in response.

Finally, listeners should note that U.S.–China tensions continue to affect Taiwan. Recent headlines show that Trump has refused to approve certain weapons packages for Taiwan, and denied President Lai Ching-te’s stopover in New York after objections from Beijing. These developments suggest ongoing recalibration of U.S. policy in the region, with major implications for trade, technology, and security.

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