The US imposes a 20% tariff on Taiwan. Do you know how much Taiwan charges the US in tariffs? It might not be as low as you think.

The US trade tariff on Taiwan was announced at 20% on the 1st, but the "Section 232" semiconductor tariffs with a larger impact have not yet been announced. On the other hand, have you ever wondered how much tariffs Taiwan imposes on the United States? (Summary: Taiwan's collective anxiety about semiconductor tariffs: What is the US "Section 232"? (Background supplement: Taiwan's 20% tariff, the new Taiwan dollar depreciates 30 yuan to hit a two-month low, next week's semiconductor tariffs are the big devil) Last week, the United States officially announced a 20% "temporary" tariff on Taiwan's exports to the United States, although the Lai government said that it was still negotiating, but the higher tax rate than Japan and South Korea still caused a huge shock to the industry, and also made the technology industry more nervous to wait for the "Article 232" commonly known as the semiconductor tax, which touched the hearts of the people in Taiwan. At this time, will you be curious, since the United States has announced a 20% tariff on us, how much tax has Taiwan always imposed on American imports? In the following, I will use the public government information provided on the Internet to quickly explain the current status of Taiwan's tariffs on US imports. Taiwan's Tariff Structure to the United States: Highly Concentrated Protection Barriers in Specific Areas Taiwan's tariff system is based on the internationally accepted "Harmonized International Classification System for Goods", and the "most favored nation" (MFN) tariff rate under the WTO structure is generally applied to goods from the United States. In general, Taiwan's trade protection is highly concentrated in specific, politically sensitive industries, but these industries happen to be areas where the United States is highly competitive. Automotive: 17.5% tariff and superimposed tax burden Taiwan imposes a 17.5% import tariff on passenger cars imported from the United States, a tariff wall that is also one of the main targets of the current negotiations between the United States and Taiwan, and it is rumored that the United States is demanding a sharp reduction to 2.5% or even zero tariffs. In addition to tariffs, imported cars also face two superimposed taxes: Excise tax: 25% below 2,000 c.c. and 30% above 2,000 c.c. Luxury tax: If the dutiable value exceeds NT$3 million, an additional 10% special goods and services tax will be charged. Although the above tax burden applies to both domestic and imported cars, it still significantly increases the final price of imported cars in the United States. Agriculture: A True Minefield for Trade Negotiations Agriculture is also one of the most important sources of trade friction between Taiwan and the United States, and Taiwan has set up multiple tariff and non-tariff barriers to U.S. agricultural products. Beef: For certain grades of U.S. imported beef (e.g., Prime, Choice), Taiwan does not impose ad valorem tax, but uses an ad valorem tax of NT$10 per kilogram. Pork: This is a highly protected industry, and Taiwan implements a "tariff quota" system for imported pork, which is applicable to pork within the quota. The additional tariff rate has been increased to 12.5%, and there are a number of non-tariff barriers, such as mandatory labelling of origin for all pork-containing foods. Poultry: Similar to pork, chicken was also subject to a tariff quota, which was taxed at 20% within the quota. Soybeans and corn: These two bulk materials, mainly used as animal feed, are basically zero-tariff imports. Industrial and high-tech products: the gap from zero to 4% In contrast, Taiwan's tariffs on high-tech and industrial products are much lower. Information communication and electronic products: due to the existence of the WTO Information Technology Agreement (ITA), semiconductors, computer parts, network communication equipment, semiconductor manufacturing equipment... and hundreds of other technology products have already enjoyed zero tariff treatment. Civil aircraft: Under the Civil Aircraft Trade Agreement, the vast majority of civil aircraft and their components are also tariff-free. Other industrial products: In 2023, Taiwan's average nominal tariff rate for industrial products is about 4.13%. If you are interested, you can go to the public inquiry channel provided by the Customs Administration of the Ministry of Finance to obtain detailed tax rate information for specific goods through the "Comprehensive Tax Rate Enquiry System" system on the website of the "Customs and Hong Kong Trade Single Window". The highlight has not yet been announced, Taiwan's semiconductor tariffs In addition, it should be emphasized that the White House's announcement last week is only an update of the "Reciprocal Tariff", and the 20% tax rate does not apply to the tariff exemption list (Annex II) and the presidential memorandum on new exemption items, including semiconductors, servers, pharmaceutical raw materials, key components, minerals and chemical materials and other Taiwan's main exports to the United States. What is Section 232? Section 232 of the Trade Expansion Act of 1962 is an incredibly powerful weapon in the U.S. president's trade arsenal. Originating from the Cold War, it gives the president unique powers: If an import is deemed a threat to "U.S. national security," the president can bypass Congress and the WTO framework and unilaterally and quickly impose trade-restrictive measures such as tariffs. The power of Section 232 lies in the fact that its definition of "national security" can be expanded indefinitely, from initially securing the supply of raw materials for the defense industry, to covering the economic well-being of the country and even protecting domestic industries. This allows the United States to reframe any economic dependence on foreign supply chains as a "national security threat" in order to gain absolute dominance in trade negotiations. Taiwan's semiconductors become the most important battlefield On April 1, 2025, the U.S. Department of Commerce officially launched a Section 232 investigation into semiconductors and related products. The scope has never been seen before, covering not only all types of chips, but also semiconductor manufacturing equipment and, most importantly, derivatives containing semiconductors. According to the analysis of the National Development Council, the impact may affect Taiwan's export bulk such as servers, graphics cards, and network switches, threatening wafer foundries such as TSMC and UMC to the entire electronic foundry and brand industry chain such as Quanta, Wistron and Hon Hai. Three possible scenarios for Taiwan's tariffs In the face of the upcoming Section 232 investigation, Taiwan's tech industry may face three scenarios: Worst case, high tariffs of (25% or more across the board ): The United States imposes indiscriminately high tariffs on semiconductors and related products from all sources. This will severely erode corporate profits, force manufacturers to make painful choices between absorbing and passing on customers on their own, and ultimately weaken the global competitiveness of Taiwanese products. Targeting mature processes: This strategy is more sophisticated and may impose high tariffs on mature process chips of 28nm and above, while granting exemptions for advanced processes below 7nm. The move is aimed at ensuring that the supply of advanced chips needed by the United States itself in areas such as AI is not disrupted. Under this script, UMC, PSMC and other manufacturers will face great pressure. Negotiating Deals, Threats in Exchange for Concessions ( most likely ): In this playbook, the threat of Section 232 would be America's most powerful negotiating lever. Taiwan's chips lie in TSMC's irreplaceable technology in advanced processes, the sincerity of investing heavily in the United States, and the strategic value of cooperating with US export controls. The end result may not be simple tariffs, but a complex deal such as a "tariff quota" or conditions for more investment in the United States (such as the previous agreement: Japan announced a $550 billion investment in the United States and South Korea also invested $350 billion). Taiwan dancing on the tightrope At a deeper level, the Section 232 investigation is much more than a trade dispute, a powerful tool for the United States to reshape the global semiconductor supply chain. The ultimate goal is to control supply chains, reduce dependence on strategic goods in a single geographic location, such as Taiwan, and create a more resilient "defense outsourcing" system that excludes China, rather than just imposing tariffs. For Taiwan, it's like an elephant dancing on a tightrope, with the economic shock of high tariffs on one side and the possibility of ...