Firm‐Level Impacts of Additional US Tariffs Under Trump 2.0

Evidence From Taiwan

Bibliographic Data

ID21310355
AuthorsKuo‐I Chang (0000-0001-5068-2183, Department of Applied Economics National Chung Hsing University Taichung Taiwan), Kazunobu Hayakawa (0000-0003-0032-9060, Bangkok Research Center, Institute of Developing Economies, JETRO Bangkok Thailand, corresponding author)
Year2026
Volume64
Issue2
Pages143-156
Publication date2026-06-01
Open AccessYes
TypeARTICLE
VenueThe Developing Economies (JOURNAL)
Journal identifiersISSN: 0012-1533 • E-ISSN: 1746-1049
PublisherWiley (PUBLISHER • GB)
DOI10.1111/deve.70011
OpenAlexW7118957296
LanguageEN
Citations received1
References cited25

This study empirically investigates the effects of the additional tariffs imposed by the US in 2025 on the Taiwanese economy. The analysis is based on monthly sales data for Taiwanese firms from January 2023 to July 2025. Tariff effects are identified by comparing 2025 monthly sales of firms whose primary sales destination was the US in 2023 with those whose primary destinations were elsewhere. Consistent with the trend of national‐level exports to the US, we find that additional US tariffs have not yet affected Taiwanese exporters. Additional results indicate that (1) Taiwanese firms with affiliates in the US did not experience positive sales effects; and (2) firms with larger production shares in China have not experienced significant changes in sales. Overall, the economic impacts of Trump 2.0 on Taiwan remain limited as of July 2025. JEL Classification: F15, F53

China · Destinations · Economic impact analysis · Production (economics) · Tariff · COVID-19 Pandemic Impacts · COVID-19, Geopolitics, Technology, Migration · Global trade and economics

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