The US imposed a temporary 20% tariff on Taiwan exports, effective from August 7.
It was reduced from 32%, which lessened the degree of impact on Taiwan’s agricultural and fishery product exports to the US, said the Ministry of Agriculture (MOA).
However, the ministry highlighted that the US had imposed lower tariffs on other nations, making it necessary to adopt various domestic and international measures to help businesses stay competitive.
Despite these challenges, the MOA also sees opportunities to expand the US market share of Taiwan’s agricultural and fishery products.
“In addition to the challenges, there are also opportunities to expand Taiwan’s market share in the US. The ministry will actively assist exporters in consolidating and expanding their presence in the US market to safeguard the rights and interests of farmers and fishermen.”
Rounding up support
In response to the temporary 20% tariff on Taiwanese exports, the MOA announced an NT$18bn (U$601m) package for the agriculture and fishery industries.
The package was structured around three major pillars, encompassing six key measures. This was designed to provide assistance across all stages from production to export.
It will offer financial support to stabilise short-term capital of the agriculture and fishery operators to encourage continued exports to the US.
This included enhanced loan interest subsidies of up to 1% for one year, raising the maximum subsidised loan to NT$30m (U$1m), to help farmers and fishery operators affected by the tariffs.
To enhanced competitiveness, it will also strengthen cold chain systems, value-added processing, and certification.
For instance, the aquaculture industry will see producers of tilapia, sea bass and affected fish species receive subsidies and rewards for enhancing cold chain facilities.
Tea farmers will receive subsidies of up to 40% and a maximum of NT$3 m (US$ 93,000), while farmer groups will receive subsidies of up to 60% and a maximum of NT$10m (US$ 310,000).
Encouraging US expansion
To encourage continued expansion into the US and other markets, the ministry is also encouraging the branding and marketing efforts, with a maximum of NT$200,000 (US$6,200) per case.
Additionally, the ministry will also provide export incentives to encourage continued expansion into the high-end US market.
For instance, edamame exports will have an up to NT$7 (USD 0.22) per kilogram, tea will have up to NT$36 (USD 1.12) per kilogram, and seabass will have up to NT$27 (USD 0.84) per kilogram.
First proposed in April, the support package has been refined through extensive consultations with key industry players, including sectors such as orchids, edamame, tea, tilapia, seabass, mahi-mahi, and distant water fisheries, said MOA.
