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U.S. Tariffs and Taiwanese Tea

U.S. Tariffs and Taiwanese Tea

Washington — Recent changes to U.S. trade policy have reshaped how Taiwanese tea enters the American market, easing some tariff pressure while introducing new challenges for importers and consumers.

  • In mid-November 2025, the United States exempted tea from newly announced “reciprocal” tariffs, removing tea from a list of agricultural goods facing additional duties following trade discussions with Taiwan.

  • Despite this exemption, a 20 percent base tariff on Taiwanese goods remains in effect, continuing to influence pricing for tea unless further reductions are negotiated.

  • In July 2025, the U.S. ended the longstanding $800 de minimis exemption, eliminating duty-free treatment for low-value international packages and increasing compliance costs for small tea orders.

  • The removal of the de minimis threshold has shifted shipping behavior, with many buyers now relying on commercial couriers rather than postal services, significantly increasing delivery costs.

  • U.S. tea businesses report that higher tariffs earlier in 2025 disrupted supply chains, with some tariffed inventory remaining in warehouses months after import.

  • Large commercial importers have been better positioned to absorb or bypass some costs through exemptions and scale, while small businesses, family farms, and individual buyers face increased complexity.

  • Taiwan continues negotiations with U.S. trade officials regarding additional tariff reductions, though industry participants expect adjustment across the tea supply chain to take time.

Sources: AP News; Taipei Times; Global Atlanta; industry trade reporting; Taiwanese tea exporters’ statements

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