As of Wednesday, April 23, 2025, there have been significant developments regarding tariffs on goods imported from Taiwan. Here's a breakdown of the situation: New US Tariffs on Taiwan: On April 2, 2025, the United States announced a new 32% tariff on all goods imported from Taiwan, citing a need for reciprocal tariffs due to the existing tariffs Taiwan levies on US goods. However, following criticism from Taiwan and concerns about the impact, the US announced a pause on this high tariff for 90 days, effective April 10, 2025, for most countries, including Taiwan. During this 90-day period, a baseline tariff of 10% is in effect for imports from Taiwan. It's important to note that semiconductors are reportedly exempt from these new reciprocal tariffs. Pre-existing tariffs, such as the 25% tariffs on steel, aluminum, automobiles, and auto parts, remain in place and are separate from the new reciprocal tariffs. The possibility of tariffs on semiconductor imports is also being discussed. Taiwan's Response: Taiwan's Executive Yuan criticized the initial 32% tariff as "unfair," "deeply unreasonable," and "highly regrettable," stating they would lodge a representation with the US Trade Representative. President Lai Ching-te announced a five-point response strategy, including: Making efforts to improve reciprocal tariff rates through negotiations. Adopting a support plan for affected domestic industries. Adopting medium- and long-term economic development plans. Forming new "Taiwan plus one" partnerships to diversify economic development.   Actively resolving non-tariff barriers to trade. Taiwan has stated it will not adopt retaliatory tariffs against the US. Taiwan intends to increase imports of US goods to help reduce the trade deficit. Potential Impacts: The tariffs, even at the reduced 10% rate, are higher than the average 3% tariff the US has applied to imports in recent years, potentially increasing costs for US consumers and businesses. Taiwanese industries, particularly those involved in ICT products beyond semiconductors (like servers), could be significantly affected. There are concerns about the impact on the AI sector, as Taiwan's servers and chip-based products are crucial to its growth. Some Taiwanese manufacturers have already shifted production from China to Taiwan and Southeast Asian countries due to previous US-China trade tensions. The new tariffs could further influence supply chain adjustments. US-Taiwan Trade Relations in General: Taiwan is a significant trade partner for the US, ranking as the 7th-largest merchandise trading partner. The US and Taiwan have a robust unofficial relationship with strong economic ties. The "U.S.-Taiwan Initiative on 21st Century Trade" aims to deepen commercial ties, with the first agreement covering areas like customs administration, trade facilitation, and anti-corruption entering into force in December 2024. Negotiations for a second agreement covering areas like agriculture and the environment are underway. Taiwan is a member of the WTO and seeks to diversify its trade and investment away from China. It's a developing situation, and the outcome of the 90-day negotiation period will be crucial in determining the long-term tariff landscape between the US and Taiwan.