Listeners, today is November 5th, 2025, and you’re tuned in to Taiwan Tariff News and Tracker, your latest update on tariffs, trade headlines, and the latest on US, Trump, and specifically, Taiwan.
The Trump administration's aggressive tariff policies, initiated in the spring and amended through the year, have brought the average US tariff rate up to between 15 and 20 percent, with President Trump threatening a further increase to the baseline reciprocal rate in July. According to the Trade Compliance Resource Hub, as of today, most trading partners, including those in Asia, face a baseline 10% tariff, and all shipments that previously enjoyed the de minimis exemption now face full duties. A special 40% transshipment penalty applies when goods are found to be rerouted through third countries to avoid tariffs.
While a majority of recent headlines focused on the back-and-forth with China – highlighted by last week's handshake agreement between Trump and Xi Jinping, pausing further threats of 100% tariffs and suspending new port fees on Chinese shipping – Taiwan is also in the tariff crosshairs. TD Economics points out that US tariffs are not only squeezing China, but virtually all trading partners, including Taiwan, with the US effective tariff rate jumping to around 17% this year. For Taiwan specifically, the data reveals a significant surge in US imports of Taiwanese goods, especially manufactured items like machinery and electronics, in early 2025. This was in part US businesses racing to stockpile Taiwanese goods before higher tariffs hit and supply chains became more uncertain.
Listeners should note that while much of the world’s attention is on US-China relations, Taiwan has emerged as one of the top sources of US imports affected by the new tariffs. TD Economics states that Taiwan, alongside Switzerland, leads recent growth in US import volumes – driven by American companies' rush to secure essential technology and electronics supplies from Taiwanese manufacturers as trade uncertainty ramps up.
Grant Thornton and other trade experts stress that though the US and China recently announced a one-year tariff ceasefire and paused some technology and agricultural sector escalations, this détente does not extend to Taiwan. There are no exemptions or suspensions for Taiwanese goods, meaning the reciprocal tariffs, and any future increases, remain in full effect for Taiwan’s exports to the US.
On the political front, Pearls and Irritations highlights that President Trump made headlines this week when he remarked he does not envision a military conflict over Taiwan, arguing that, in his assessment, the appetite for such escalation simply is not there in Beijing. Despite this, economic pressure and tariff policy remain central to the US position on Taiwan-related trade.
In summary, Taiwan continues to be a major player in US imports, bearing the brunt of broad-based tariff hikes set by the Trump administration. The current US baseline tariff rate on most goods remains at 10%, and a threatened increase to as high as 20% could arrive at any time, with no specific exemptions on the horizon for Taiwanese products.
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