Listeners, today on Taiwan Tariff News and Tracker, we bring you the latest headlines on US trade policy, tariffs, and how these impact Taiwan directly. The most recent data from S&P Global Ratings reveals that as of October 6, the statutory average trade-weighted effective US tariff rate has jumped to 19.3 percent, up from 16.9 percent just two weeks ago. This marks one of the highest levels in decades and signals growing trade tensions across key sectors.

Under President Trump’s second term, tariff policy has taken center stage, especially regarding China and its neighbors. The World Trade Organization recently confirmed that Trump’s “reciprocal” tariff program, introduced back in August, raised the US’s effective tariff rate to almost 17 percent, the highest since the 1930s. For listeners following Taiwan’s export performance, Taiwan’s share of US imports has surged this year, overtaking South Korea to become the fifth-largest source for American goods as reported by Maeil Business News Korea. In particular, Taiwan’s foundry and semiconductor sector has benefited, grabbing market share as US buyers diversify away from higher-tariff sources.

However, Trump’s tough stance on transshipment—a tactic where Chinese goods are rerouted through third countries—is having ripple effects in the region. Channel News Asia highlights that Trump announced a 40 percent tariff levy for goods believed to be transshipped from China via countries like Vietnam, Malaysia, or Thailand to the US. While Vietnam saw its direct tariff rate reduced to 20 percent under a “Great Deal of Cooperation,” any products suspected of containing Chinese-origin components could face an additional 40 percent tariff, creating uncertainty and driving many exporters to rethink supply routes.

For Taiwan specifically, political developments are intertwined with these economic currents. President Lai Ching-te, in a recent interview with a conservative US radio show, suggested that if Trump could persuade China to permanently renounce the use of force against Taiwan, he should be awarded the Nobel Peace Prize. This comment has sparked fierce reactions from Beijing, accusing Lai of pandering to foreign interests, while opposition KMT Chairman Eric Chu urges Taiwan to focus on its own efforts for cross-strait peace rather than rely on outside leaders.

Meanwhile, Taiwan remains a critical US partner in both trade and technology. The government announced on October 8 that Lin Hsin-i, chairman of Taiwania Capital, will represent President Lai at the upcoming APEC Economic Leaders’ Meeting in Korea, where sustainable development and AI innovation are top priorities. This underlines Taiwan’s strategic push to strengthen its role in global value chains and advanced manufacturing. With tariffs reshaping investment patterns, Taiwan’s export market to the US continues to adapt under both economic and political pressures.

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