Trump’s Tariffs 2.0: New Effects and Implications to Taiwan

Document Type

Article

Journal Title

Taiwan Insight

Publication Date

5-8-2025

Abstract

On April 2, 2025, United States President Donald Trump announced a policy order under the International Emergency Economic Powers Act (IEEPA)‘s authority and introduced a sweeping 10% universal baseline tariff on its imports from all trading partners. The Trump administration also sought reciprocal tariffs, with an additional rate from 1 % to 40 % on nearly 60 trading partners. This move toward a blanket reciprocal tariff has significantly raised concerns about a potential global trade war, leading to a downturn in stock markets worldwide. In response, President Trump made a policy shift on April 9, pausing most countries’ “reciprocal tariffs” for 90 days. Trump’s back and forth policy shifts have also resulted in a drastic swing in the global markets. Despite the pause, the new minimum 10 % tariff, effective April 5, applies to goods imported from all countries, excluding semiconductors, pharmaceuticals, and critical minerals.

Comments

This article is freely available on the web from the University of Nottingham.

Publisher Statement

Taiwan Insight is an online publication offering a platform for scholars and other experts of all disciplines to discuss issues related to Taiwan. Every week, our editors curate a special issue based around a core theme or topic and invite experts to share their reflections or research relating to this theme. These themes range from contemporary politics, to society, culture, and history. Taiwan Insight thus strives to cover the issues of the day in Taiwan, whilst also keeping space for broader perspectives and discussions of topics less commonly seen in other publications.

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