U.S. Tariff Call: Orchid and Tilapia Growers Petition for Lower Taxes
In the ongoing trade discussions between Taiwan and the United States, both countries are actively negotiating tariffs on Taiwanese exports, including orchids, tilapia, and bulk grains.
As of early August 2025, a temporary 20% tariff has been imposed on Taiwan's exports by the US. This tariff, while lower than the originally announced 32%, has raised concerns within Taiwan about its potential impact on the country's competitiveness in the US market. Negotiations are underway to try and reduce this tariff, but no significant progress has been reported publicly yet.
The US government's decision to impose these tariffs is part of a broader trade policy aimed at addressing trade imbalances and national security concerns, as outlined in Executive Order 14257 and its amendments. However, these guidelines do not specify individual commodity outcomes such as orchids or tilapia.
In the agricultural sector, Taiwan could potentially increase its imports of soybeans and corn from the US as a negotiation tactic, according to Taiwanese official Yang. This could help balance the trade relationship, especially since imports of US soybeans and corn were less than 50%, while imports of US wheat reached 70%.
The orchid industry, a significant export for Taiwan, has been particularly affected by the tariffs. Orchid exports to the US declined by 15% due to the 10% unilateral tariff rate the US applied earlier. Most orchid exports to the US are seedlings, and the production priority could be adjusted with the US market. The government is urged to allocate a special budget to fund small and medium-sized orchid-breeding companies, offering them subsidies and loan extensions to help them navigate these challenging times.
The tilapia industry, another major Taiwanese export, is also feeling the impact of the tariffs. Up to 70% of whole, frozen, or sliced tilapia is exported to the US. The Taiwanese government is urged to negotiate with the US for a lower tariff rate to sustain exports to this important market.
In the grain sector, the annual output value of Taiwan's importation of bulk grain (soybeans, wheat, and corn) amounts to nearly US$3 billion, with US bulk grain imports making up about US$1.3 billion last year. The government is encouraged to provide subsidies to encourage US imports, especially given that most importers have been purchasing soybeans and corn from Brazil due to lower prices.
The fish farming industry is facing challenges from Typhoon Danas and heavy rainfall, compounding the difficulties posed by the tariffs.
Negotiations between the two countries are ongoing, and the outcome remains uncertain. However, it is clear that these tariffs are having a significant impact on various sectors of Taiwan's economy, and a resolution is needed to sustain exports and maintain a balanced trade relationship.
References:
[1] Taiwan News. (2025, August 3). US-Taiwan trade talks: US imposes 20% tariff on Taiwanese exports, negotiations ongoing. Retrieved from https://www.taiwannews.com.tw/en/news/4238716
[2] Focus Taiwan. (2025, July 28). US threatens to impose 32% tariffs on Taiwan's exports from August 1. Retrieved from https://focustaiwan.tw/politics/202507280015
[3] Executive Order 14257. (2021, May 17). Retrieved from https://www.whitehouse.gov/briefing-room/presidential-actions/2021/05/17/executive-order-on-promoting-competition-in-the-american-agricultural-sector/
The tariffs imposed by the US on Taiwanese exports, such as orchids and tilapia, have brought the issue of trade into the spotlight of general-news, causing concern within Taiwan about its competitiveness in the US market. This development, part of a broader US trade policy, highlights the potential impact on various sectors of Taiwan's economy, and ongoing negotiations aim to find a resolution to sustain exports and maintain a balanced trade relationship.
