Premier Cho Jung-tai held talks with edamame producers in Pingtung: In response to the competitive pressure from China redirecting exports to Japan, the government is launching an 88 billion NT dollar support plan.

Taiwan • Business • 04/13 14:39
Premier Cho Jung-tai held talks with edamame producers in Pingtung: In response to the competitive pressure from China redirecting exports to Japan, the government is launching an 88 billion NT dollar support plan.

On April 13, 2025, Premier Cho Jung-tai (Chuo Jong-tai) held a meeting with edamame producers in Pingtung to discuss the impact of U.S. tariff policies on Taiwan's edamame industry. Taiwan's edamame exports are primarily to Japan, accounting for 70%, while the U.S. accounts for about 20%. With U.S. tariffs on Taiwan reduced to 10% and Chinese tariffs increased to 125%, there may be a shift to the Japanese market, putting competitive pressure on Taiwan. The government plans to launch an NT$88 billion support program to help businesses explore markets and upgrade equipment. The details of the subsidies will be announced on April 21.

Key Updates

04/13 18:08

The EU is accelerating negotiations for a free trade agreement to address US tariffs, and the ECB is expected to cut interest rates in April to ease economic pressure.

In response to U.S. President Trump's imposition of high tariffs on foreign trade partners, the European Union has postponed imposing retaliatory tariffs on the U.S. for 90 days to create room for negotiations and has sped up negotiations on free trade agreements with several countries to lessen dependence on the U.S. The European Central Bank plans to cut interest rates on April 17 to tackle slowing inflation and sluggish economic growth. This action is intended to lessen the impact of U.S. tariff policies on the European economy and to adjust the EU's trade and monetary policies accordingly.

04/13 17:06

The United States has temporarily exempted electronic products from tariffs, and the Secretary of Commerce has announced that tariffs on semiconductors will be imposed in one to two months.

On April 13, 2025, the U.S. government announced a temporary suspension of import tariffs on 20 categories of electronic products, including smartphones, laptops, and semiconductor components, offering short-term relief for companies like Apple, Dell, and TSMC. Howard Lutnick, the U.S. Secretary of Commerce, stated that this is a transitional measure, which is expected to be integrated into a new "semiconductor tariff" framework within one to two months, aimed at encouraging manufacturing to return to the U.S. and reducing dependence on Asian supply chains.

04/13 16:38

Trump's Tariff Policy for 2025 Increases Shoe Prices: Brands such as New Balance Face Pressure from Rising Import Costs

At the beginning of 2025, the Trump government implemented a new tariff policy, imposing tariffs as high as 125% on footwear products imported from countries like Vietnam and China, resulting in higher costs in the U.S. footwear market. Even though brands like New Balance stress "Made in USA," price hikes are unavoidable due to their reliance on imported materials. U.S. shoe manufacturing makes up just 1% of the market, and consumer spending is expected to go up, with shoe prices generally rising by 10% to 15%. This policy is intended to encourage the return of American manufacturing, but the supply chain's dependence on Asia makes it hard to avoid cost pressures.

04/13 16:38

Taiwanese companies encounter high tariffs and cost challenges when establishing factories in the US: Cultural differences further complicate matters.

Under President Trump's "reciprocal tariff" policy, Taiwanese companies face challenges in establishing factories in the United States, including high construction and labor costs, cultural differences and management system disparities, and supply chain breaks. Although semiconductor products are temporarily exempt, other high-value products are not, forcing companies to consider establishing factories to avoid tariffs. The experiences of companies like TSMC in establishing factories in the U.S. highlight the challenges of "Made in America" and have led to issues such as labor disputes and legal risks.

04/13 15:36

U.S. Commerce Secretary Howard Lutnick announced new tariffs that will impact smartphones and semiconductors, emphasizing on American manufacturing and national security.

On April 13, 2025, United States Secretary of Commerce Howard Lutnick announced that smartphones, computers, semiconductors, and related electronic products will be subject to the new "semiconductor tariff" system in the next month or two. Although these products were recently granted temporary exemptions, Lutnick emphasized that the exemptions are not permanent. The purpose of the taxation is to encourage manufacturing to return to the United States and to ensure national security. This policy is tied to the Trump administration's national security investigation and may involve a tax rate of 25% or more, with specific details to be announced on April 14.

04/13 14:39

Premier Cho Jung-tai held talks with edamame producers in Pingtung: In response to the competitive pressure from China redirecting exports to Japan, the government is launching an 88 billion NT dollar support plan.

On April 13, 2025, Premier Cho Jung-tai (Chuo Jong-tai) held a meeting with edamame producers in Pingtung to discuss the impact of U.S. tariff policies on Taiwan's edamame industry. Taiwan's edamame exports are primarily to Japan, accounting for 70%, while the U.S. accounts for about 20%. With U.S. tariffs on Taiwan reduced to 10% and Chinese tariffs increased to 125%, there may be a shift to the Japanese market, putting competitive pressure on Taiwan. The government plans to launch an NT$88 billion support program to help businesses explore markets and upgrade equipment. The details of the subsidies will be announced on April 21.

04/13 14:39

Trump's Tariff Policy for 2025 Deals a Major Blow to Apple: iPhone Prices Could Skyrocket, Supply Chain Moves to India, Stock Value Drops by Over $1 Trillion

In early April 2025, President Trump of the United States imposed a 145% tariff on imports from China, which had a significant impact on Apple Inc. Since 90% of its iPhone production is concentrated in China, Apple faced significant tariff pressure and considered relocating part of its production to India. On April 11, the Trump administration announced a temporary exemption from tariffs for electronic products, including smartphones, but by then, Apple's stock price had already fallen by 27%, and its market value had shrunk by over $1 trillion. This article examines the effects of the trade war on Apple, including changes in pricing, supply chain adjustments, and market reactions.

04/13 11:08

Escalation of the US-China trade war impacts the German economy: GDP is forecasted to decline, and exports are hindered, forcing a shift to new markets.

The escalation of the US-China trade war is putting pressure on the German economy, hindering exports, with GDP expected to decline. The German government and industry are seeking strategies, including exploring emerging markets, restructuring supply chains, and driving value chain transformation to lessen reliance on the US and Chinese markets. Reports by IAB and IW show that tariff policies will lead to a drop in Germany's GDP and a decline in employment. Germany is advancing free trade agreements with Southeast Asia, Africa, and Latin America, and enhancing local manufacturing and boosting technology R&D.

04/13 10:40

US-China Trade War Escalates: Trump Set to Announce New Tariff Policy on Semiconductors, Taiwanese Contract Manufacturers Could Benefit

Former President of the United States, Donald Trump, will announce a new semiconductor tariff policy on April 14, with tariff rates expected to exceed 20%, and may involve a national security investigation under Section 232 of the Trade Expansion Act. In response, China is adjusting its semiconductor origin rules, imposing a 125% tariff on U.S.-made chips. This move could potentially benefit Taiwanese foundries like UMC and Vanguard International Semiconductor due to the shift in orders.

04/13 10:08

Trump's tariff waiver causes market fluctuations: Yields on non-investment grade bonds turn negative, Bitcoin rebounds to $8,590, Apple products are unaffected.

On April 11, President Trump of the United States announced a tariff exemption for certain tech products and paused the reciprocal tariff policy for 90 days, which led to fluctuations in global financial markets. Yields in the U.S. non-investment grade bond market turned negative, and Bitcoin's price rebounded to $85,900. Apple Inc. avoided the pressure of high tariffs because its products were exempted. This policy adjustment provided a temporary boost to the tech and crypto asset markets, but it did not eliminate market uncertainty.

Current Status of Taiwan's Edamame Exports: Mainly to Japan, Then the US

According to the Agriculture and Food Agency of the Ministry of Agriculture, Taiwan's total edamame production in 2024 is 77,258 metric tons, with 45% allocated for export, approximately 32,654 metric tons. In the export market, Japan accounts for 73%, about 23,000 metric tons, while the US accounts for 19%, around 3,200 metric tons. Pingtung is Taiwan's largest production area, with a planting area of about 4,482 hectares, accounting for 53% of the total, and an annual output of 38,577 metric tons.

The main export variety is "Kaohsiung No. 9," primarily frozen edamame. Products exported to Japan are mostly in pod form, used as a snack with drinks; exports to the US are split evenly between pods and beans, serving both Japanese residents and general consumers in the US.

Tariff Changes: US Reduces Tariff on Taiwan to 10%, Increases on China to 125%

In early April 2025, the US announced the implementation of a "reciprocal tariff policy" on multiple countries, reducing the tariff on Taiwanese edamame from 32% to 10%, while increasing it on China to 125%. Although Taiwan's edamame exports to the US only account for 20% of total exports, five companies focus mainly on the US market. The Executive Yuan stated that Taiwan and the US have begun video negotiations, which are still ongoing.

The Agriculture and Food Agency noted that the US imports about 40,000 metric tons of frozen edamame annually, with 70% coming from China and Taiwan accounting for about 10% to 15%. Despite the significant increase in Chinese tariffs, due to low production costs, some products may still enter the market at low prices, creating price competition for Taiwan.

China Redirects to Japan: Taiwan Faces Competitive Pressure

There is widespread concern among industry players that if Chinese edamame is blocked by US tariffs, products originally destined for the US may be redirected to Japan, potentially pushing Taiwan out. In 2024, China's edamame exports to Japan reached over 24,000 metric tons, surpassing Taiwan's 23,000 metric tons for the first time, making China Japan's largest edamame import source.

Additionally, due to the ASEAN trade agreement, the tariff on Chinese edamame to Japan is only 3.3%, while Taiwan, not being part of ASEAN, faces a 6% tariff, nearly double that of China. Wei Dongqi, chairman of the Taiwan Frozen Vegetables and Fruits Industry Association, pointed out that this tariff disparity, combined with China's potential redirection to Japan, will further compress Taiwan's market space in Japan.

Government Support Measures: NT$88 Billion Industry Support Plan

To mitigate potential impacts, the Executive Yuan proposed an NT$88 billion industry support plan, covering three main areas and six measures, with specific subsidy details to be announced on April 21. The Ministry of Agriculture's briefing indicated that the plan includes:

  • Financial Support (NT$2.4 billion): Subsidies for agricultural loan interest rates, targeting farmers with contracts for over 2 metric tons with US exporters from 2022 to 2024, or agricultural groups and enterprises with over 100 metric tons of US export performance.
  • Enhancing Industry Competitiveness (NT$8.4 billion): Strengthening the export cold chain system, accelerating processing and value-added transformation, and obtaining domestic and international certifications (such as ISO, HACCP, HALAL, etc.).
  • Diversifying Markets (NT$7.2 billion): Expanding domestic marketing activities, developing overseas marketing channels, and reducing reliance on a single market.

Additionally, for companies with over 50 metric tons of US export performance, the government will provide an additional 10% subsidy for the construction of processing facilities and assist in improving product packaging and long-term preservation technology.

Industry Appeals: Land, Cost, and Labor Issues Await Resolution

During a forum, industry players expressed concerns about tariffs, market issues, and production challenges. Chen Ronghua, a representative of contract edamame farmers, noted that rent for Taiwan Sugar Corporation land, electricity prices, and fertilizer costs continue to rise, coupled with a shortage of agricultural labor. An edamame harvester costs over NT$10 million, and they hope the government will provide subsidies.

Other industry players pointed out that Taiwan's agricultural land faces competition from the tech industry. The Southern Taiwan Science Park project plans to acquire over 1,400 hectares from Changhua southward, including about 400 hectares of edamame planting land, which may affect future supply capacity.

Policy Timeline and Subsequent Actions

The announcement of subsidy details, originally scheduled for April 14, has been postponed by a week to April 21 due to ongoing changes in US policy. Zhuo Rongtai emphasized that the government will continue to listen to industry opinions and dynamically adjust policy content to ensure industry resilience and export stability.

References

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