Listeners, here’s the latest update for Taiwan Tariff News and Tracker as of Wednesday, September 17, 2025. Following President Donald Trump’s recent executive orders, shipments from Taiwan to the United States are now subject to a temporary 20 percent tariff—one of the highest rates the administration has imposed for trading partners in the region. This is a drop from the initial proposal of 32 percent, and the current rate applies only to about one quarter of Taiwan’s exports bound for the US. Despite the lowering, many in Taiwan have expressed disappointment, with President Lai Ching-te facing scrutiny for not securing more favorable terms.

This tariff policy is part of the Trump Administration’s broader push to increase reciprocal tariffs, now setting a baseline rate of 15 to 20 percent on US imports from many countries, including Taiwan. There’s yet to be official documentation confirming a permanent increase, but guidance suggests country-specific rates are already being enforced. Notably, shipments sent through the postal network—usually exempt—are now subject to special duty rates, further complicating matters for Taiwanese exporters.

A key concern for Taiwan’s government is the vulnerability of its small and medium-sized enterprises, which form the backbone of Taiwan’s economy. In response, President Lai announced a special budget to help businesses adapt to the new tariff landscape. On August 29, Taiwan’s legislature passed measures providing a 10,000 NTD cash handout, designed to strengthen economic and social resilience during this turbulent period.

To tackle the underlying trade deficit and aim for lower tariffs, the focus has shifted to increasing Taiwan’s purchases from the United States. Major areas include arms deals—particularly as Taiwan seeks to clear a backlog of US arms packages—and liquefied natural gas purchases, with reports of an imminent agreement for six million tons from Alaska, although infrastructure challenges remain.

Investment in technology and semiconductors continues to be pivotal. Taiwan Semiconductor Manufacturing Co. (TSMC) and other major chip producers with ongoing US investments are slated for exemptions from a proposed 100 percent tariff on semiconductor imports. Smaller firms, however, may face challenges in expanding US operations or navigating increased tariffs.

Taiwan’s strategy for developing a “non-Red supply chain”—partnering with democratic countries to reduce reliance on the People’s Republic of China—has gained momentum. According to recent interviews with officials, investment commitments in critical sectors like semiconductors are expected to shape future negotiations. Taiwanese leaders have also pressed the Trump Administration to eliminate double taxation on Taiwanese companies operating in the US. The House of Representatives passed a related bill overwhelmingly, but Senate action is still pending.

That wraps up today’s report on tariffs and US-Taiwan economic relations. Thanks for tuning in to Taiwan Tariff News and Tracker. Remember to subscribe for the latest updates.

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