U.S. Tariff Hike on Taiwan, Global Markets Rattle

President Trump’s new tariffs have raised the average U.S. import tariff rate to 15.2%, with Taiwan facing a 20% tariff on exports to the U.S.—higher than the rates for Japan and South Korea. The move has caused market volatility, particularly in Taiwan and on Wall Street, with U.S. stock indices seeing their steepest declines since May, exacerbated by a weak jobs report. Canadian businesses are mostly exempt under CUSMA but face uncertainty, especially with pharmaceuticals potentially subject to tariffs as high as 200%. U.S. companies are shifting procurement away from foreign suppliers, leading to higher prices and reduced demand for imports. The tariffs have drawn widespread criticism globally for their inconsistency and unclear strategic rationale. Despite the turmoil, Taiwan remains a key player in global technology supply chains as negotiations continue.