Welcome to Taiwan Tariff News and Tracker. Today’s spotlight is on the latest headlines shaping US-Taiwan trade, tariffs, and security ties under President Trump.

After months of speculation and negotiation, the biggest tariff headline for Taiwan in 2025 is the Trump administration's announcement of a reciprocal tariff rate of 32% on Taiwanese goods, making it one of the steepest non-China tariff hikes of Trump’s current presidency. Notably, the White House excluded semiconductor products—the cornerstone of Taiwan’s exports—from the tariff list, as confirmed by an April 2 executive order. Trump has gone on record saying Taiwan has gained an unfair share of the global chip market while not shouldering enough of its own defense costs, providing a political rationale for these new tariffs.

This rate was previously set at 20%, but was upped amid growing diplomatic friction. The Daily Star and early economic modeling from sources like WealthCA confirm that these tariffs are already having an impact. Taiwan’s economy is estimated to take a 0.38% GDP hit from the escalation, translating to substantial financial headwinds for Taiwanese businesses that rely on the American market.

On the US side, analysts from The Conversation and WealthCA warn that higher tariffs on Taiwan and many other trading partners are raising prices for American consumers and businesses. US annual GDP is likely to contract by over $100 billion due to the combined effect of these new tariff measures, despite attempts by the Trump administration to offset this with lower tariffs for a handful of allies.

For Taiwan, the tariff escalation isn’t the only area of concern. Security ties, which have always run parallel to the trade relationship, appear unsettled. According to Mundo America and the Khyber Mail, Trump recently refused to finalize a $400 million military aid package for Taiwan, including ammunition and drones. This move followed several other delays in the delivery of previously agreed weapons systems, like F-16 fighters and Harpoon missiles. Privately, officials in Taipei have expressed growing concern that US economic priorities under Trump are taking precedence over longstanding defense commitments.

Further complicating the outlook, multiple outlets, including Firstpost, report that President Trump has made high-profile concessions to China in broader negotiations—rolling back export controls, stalling military aid to Taiwan, and decreasing the US commitment to Indo-Pacific allies—to secure deals on issues like TikTok. For Taiwanese leaders, this trend is worrying. President Lai Ching-te has now pledged to raise defense spending to 5% of GDP by 2030 but admits this is still far from the 10% that Trump has demanded.

Listeners, this evolving story will shape both economic and security realities for Taiwan long after the headlines fade. For daily updates on tariffs, trade war developments, and US-Taiwan relations, subscribe and stay with us.

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