Taiwan's Trade: The Truth Behind US Tariffs - Debunking the 64% Myth

World Trade Organization data reveals a stark contrast between perceived and actual tariffs, highlighting the complexities of international trade and the potential for misinformation.

The recent announcement by former US President Trump on aggressive reciprocal tariffs, alleging a 64% tariff imposed by Taiwan on US goods, has sparked significant discussion. The US proposed a retaliatory measure of a 32% tariff. However, a closer look at the data reveals a different picture. The Cato Institute provides a more accurate assessment of the situation.

According to the Cato Institute, drawing on World Trade Organization (WTO) data from 2023, the trade-weighted average tariff rate imposed by Taiwan on US goods is actually 1.7%. This is a significant variance of over 62 percentage points from the figure cited by the White House. China’s trade-weighted average tariff rate is 3%, which is also significantly lower than the 67% estimate. The largest discrepancy exists with Cambodia. According to 2023 figures, Cambodia's trade-weighted average tariff rate is 7.9%, while the White House cited a figure of 97%.