U.S. tariffs escalate, putting Taiwan's orchid producers in a deep hole
The United States' tariffs on Taiwanese orchid exports have escalated, with a 20% tariff imposed from August 2025, marking a significant increase from the previous 10% rate since April. This new tax has created financial pressures for exporters in Taiwan's orchid industry, which holds a 46% share of the U.S. market.
Taiwanese orchids face harsher tariffs compared to competitors such as the Netherlands, which has a lower 15% tariff despite holding a 40% U.S. market share.
One of the affected companies is Charming Agriculture Co, represented by grower Lee Tsang-yu. Lee is adapting to the challenges by expanding sales efforts into new markets such as Thailand, Vietnam, Indonesia, and Brazil, while scaling back shipments to the U.S. Despite the tariff pressures, Lee emphasizes that the U.S. market cannot be completely withdrawn from due to its size and importance.
Other growers in Taiwan are absorbing some tariff costs but are under economic strain as the U.S. tariff rose from 10% to 20%. This increase has intensified competition against other countries with lower tariffs on similar products.
In response, the Taiwanese government is planning a "resilience special budget" to mitigate the tariff impact. The aim is to provide immediate short-term assistance, although the full measures require further review.
Ahby Tseng, secretary-general of the Taiwan Orchid Growers' Association, stated that most growers have been absorbing a 10% tariff but cannot bear a temporary 20% levy on Taiwan announced by Trump last week. Stockpiling orchids is not an option for growers due to the plants' continuous growth.
Lee Tsang-yu, a Taiwanese orchid-grower, has seen tariffs on his seedlings rise from zero to 20% due to U.S. President Donald Trump's global trade war. His company, Charming Agriculture Co, operates four greenhouses in Tainan's Houbi District.
Taiwanese orchids have a competitive edge due to their flowers lasting longer than Dutch plants. However, the Netherlands, a main rival of Taiwan in the U.S. orchid market, has been hit with a relatively lighter 15% tariff.
Lee reasons that "Trump won't be president forever." Despite the challenges, he remains optimistic that his efforts to expand into other markets will "gradually offset" the impact of the higher tariff, although these markets might not always be as lucrative.
Lee has already reduced shipments to the U.S. by 15% since late May, as the U.S. accounted for 45% of his exports before that. Lee is more concerned about the general state of the U.S. economy since Trump took office, stating that everything has become more expensive and consumer spending is shrinking.
Taiwanese orchid growers, including Lee's company, are among the world's largest producers of Phalaenopsis orchids, with exports reaching NT$6.1 billion last year. However, the specific export numbers for other years were not mentioned.
The U.S. was Taiwan's biggest market for orchid shipments, accounting for about NT$2 billion last year. The impact of the tariffs on the industry is a significant concern, and the Taiwanese government and growers are working together to navigate these challenges.
In light of the 20% tariff imposed on Taiwanese orchids by the United States, the business sector has been impacted, especially within Taiwan's orchid industry that holds a significant 46% share of the U.S. market. The increased finance costs have also resulted in increased competition from countries with lower tariffs on similar products, such as the Netherlands, which only faces a 15% tariff.
