US Agricultural Export to Taiwan: Surged 16% Over Five Years

The bilateral trade relationship between the United States and Taiwan is characterised by a robust and dynamic connection founded on shared democratic values and mutual economic interests. In the South China Sea, Taiwan is a strong and reliable trade partner, ranking among the top U.S. trading partners globally. Further, Taiwan is critical in global supply chains and contributes significantly to the U.S economy.

The economic ties deepen as Taiwan’s geographical limitation necessitates significant food imports, and the U.S. plays a critical role, making Taiwan the top market for U.S. agricultural products.  This dependency is clear in key commodities like beer, soybeans, corn, etc., ensuring food stability and economic well-being.

United States Agriculture Export to Taiwan

• According to Taiwan’s trade data, the agricultural goods imported from the United States grew by 15.6% or $500 million in 2024, compared to 2020.
• Notably, the United States’ exports to Taiwan increased by 40% or $12.1 billion in 2024, compared to 2020.
• The bilateral trade between Taiwan and the US experienced a sharp decline in 2023, compared to 2022, but regained momentum in 2024.

***Value USD Billion

US Agricultural Exports to Taiwan

Over the years, the United States has emerged as one of the key agricultural trade partners of Taiwan, ranking among the top importers of U.S. farm products in Asia. As per Taiwan’s agricultural import data, Taiwan heavily relies on the U.S for soybeans, Maize, Fresh or chilled bovine meat, wheat-meslin, Fresh apples, etc.

This makes American agricultural products a crucial part of Taiwan’s food security and supply chain.  Top importing commodities mentioned below –

• Maize, Fresh and boneless bovine meat, and non-alcoholic beverages are the top agricultural exports by the US to Taiwan in 2024, which significantly grew by 50.9%, 29.1%, & 25.8% respectively, compared to 2023.
  
• This significant growth reflects emerging demand and opportunity for US agricultural suppliers to seize the market and strengthen their existing positioning by expanding networks.
  
• This growing US presence in Taiwan’s market also opens the door for local suppliers & buyers with the availability of food products at an affordable price, a stable supply chain, and potential business collaboration.

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***Value USD Million

Taiwan’s Agricultural Exports to the United States  

While Taiwan heavily depends on the U.S. for key agricultural imports, such as soybeans, maize, fresh or chilled bovine meat, wheat-meslin, fresh apples, etc., it also emerges as a major exporter to the United States, particularly in high-tech and industrial goods. Taiwan’s top 10 exports to the US are listed below:

• Pasta (190230) and Waters (220210) are Taiwan’s top products exported to the U.S., which grew by 36.1% and 50.8% in 2024, compared to 2023.
• Notably, Taiwan’s top agricultural exports, such as Seasom oil & its fraction (151550), extracted malt (190190), and uncooked pasta (190219) to the USA experienced a sharp decline in 2024, compared to 2023.
• Taiwan’s shrinking market access to the U.S. indicates less demand, the emergence of competitors, and more.

Value USD Million***

How Trump’s Tariffs Hit Taiwan Exports

The Trump administration imposed a flat 20% tariff under Section 232 of the Trade Expansion Act of 1962. Affecting the bilateral trade relationship between the countries. However, the Taiwanese government is trying to secure a trade deal with the U.S. to protect its export market. Notably, the U.S. tariffs are significantly disrupting the supply chain of semiconductors. Let’s discuss these effects –

• Diversification – Trump’s new tariff regime will create a long-term economic trend pushing Taiwanese companies to diversify their supply chain away from the U.S., and has raised concern for a sustainable partnership with the U.S due to unpredictable trade policies.
  
• Blow to traditional industries – Small and medium-sized companies are particularly vulnerable due to the sudden imposition of tariffs, while big companies are somewhat insulated.
  
• Higher than average – The U.S. government has imposed a 20% “reciprocal” tariff on Taiwanese goods, a rate higher than the 15% applied to other major trading partners like Japan and South Korea, making Taiwanese goods less competitive and attractive.

Conclusion –

Trump’s new wave of tariffs under section 232 of the Trade Expansion Act of 1962 imposes a flat 20% tariff on Taiwan, which is higher than the rates for Japan or South Korea, affecting Taiwanese industries and making their goods less competitive and attractive in the U.S. market. Therefore, the government must negotiate a deal with the U.S. so that small and medium-sized industries can access the market.

Questions might ask –

• What does the United States export to Taiwan?
  In 2024, Taiwan imported $42.3 billion worth of goods from the United States, which significant increase by 6.5% from 2023. Notably, the U.S. is Taiwan’s largest supplier of fresh fruit and tree nuts. 
  
• What is the U.S.’s biggest agricultural export?
  As per U.S. trade data, soybeans, Maize, and fresh and chilled bovine meat are among the biggest agricultural exports to Taiwan in 2024, with $601, $385, and $356 million, respectively.
  
• Where does Taiwan get most of its food from?
  Taiwan is heavily dependent on imported grains, notably soybeans, wheat, and corn, to meet its food and feed demands; the majority of them come from the U.S.
  
• Who is Taiwan’s biggest export partner?
  According to Taiwan trade data, Taiwan’s top export partner is the U.S., accounting for $42.3 billion.