Taiwan Faces Critical Trade Deadline with US as Trump Tariffs Threaten Economic Growth and Market Stability Podcast Por arte de portada

Taiwan Faces Critical Trade Deadline with US as Trump Tariffs Threaten Economic Growth and Market Stability

Taiwan Faces Critical Trade Deadline with US as Trump Tariffs Threaten Economic Growth and Market Stability

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 Listeners, welcome back to Taiwan Tariff News and Tracker. Today’s update comes as Taiwan faces a volatile trade relationship with the United States under President Trump’s current administration. Since April, the US has imposed sweeping trade barriers, and all eyes are on what happens when the 90-day tariff pause expires July 9.

On April 2, President Trump announced a dramatic 32 percent reciprocal tariff on virtually all imports from Taiwan. Though this measure specifically exempted Taiwan’s critical semiconductors, the initial announcement sent shockwaves through global markets and hammered Taiwan’s stock prices. Bloomberg Opinion recently ran an op-ed by Taiwan’s President William Lai, pushing for deeper and fairer trade ties, but the Trump administration’s intentions remain ambiguous. According to reporting from the Global Taiwan Institute, Taiwan is among the first countries the Trump team is negotiating with, but US demands are strict and seem aimed at maximizing American advantage.

Just a week after the 32 percent tariff was announced, Trump lowered the rate to 10 percent for a 90-day negotiation window, which ends this week. The American Chamber of Commerce in Taiwan and several major US business groups have since urged Washington to scrap these import taxes. Taiwan’s government, led by Premier Cho Jung-tai, has already prepared an NT$88 billion plan to stabilize the economy and support affected sectors. These tariffs are widely seen as a severe test for President Lai’s strategy of relying on closer US ties to counterbalance China.

The uncertainty is immense. The Chung-Hua Institution for Economic Research now forecasts Taiwan’s 2025 growth could sag to just 1.66 percent if US tariff rates rise above 10 percent, and potentially fall below 1 percent if tariffs go higher or if there’s a global downturn. Experts from Focus Taiwan warn the duty could increase to at least 15 percent after the pause ends, and that would still be considered a positive outcome by some policymakers. If tariffs return to 32 percent, the manufacturing sector could shrink by around 5 percent, based on projections from the National Development Council.

For now, almost all Taiwanese goods entering the US are subject to the 10 percent reciprocal tariff, except those specifically exempted, such as computers, cell phones, and semiconductors. But unless a new deal is struck or another extension is announced before July 9, that rate is set to leap back to 32 percent, placing Taiwan among the countries facing the steepest US tariff rates worldwide—alongside only China and a select group targeted for punitive rates.

Trade negotiators in Taipei are hoping for a tailored deal, but American policy is unpredictable. Trump’s stated goal is to push more manufacturing back to the US, and that means high tariffs are here to stay unless major concessions are made. As always, we will continue to track whether Taiwan can secure a more favorable deal before the deadline.

Thanks for tuning in to Taiwan Tariff News and Tracker. Don’t forget to subscribe so you never miss an update. This has been a quiet please production, for more check out quiet please dot ai.

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