TAIPEI (Taiwan News) — TPP Chair Huang Kuo-chang (黃國昌) on Thursday criticized President Lai Ching-te’s (賴清德) proposal to allow tariff-free imports of US agricultural products, warning it could devastate Taiwan’s farming sector.

During a meeting with Japan’s Liberal Democratic Party youth division, Huang cautioned that Taiwan's agricultural industry could collapse under pressure from US agricultural dumping, per CNA. He advocated for closer cooperation with Japan, noting both countries face similar challenges in agriculture and monetary policy.

Former Economic Minister Yin Chi-ming (伊啟銘), who served under former President Ma Ying-jeou (馬英九), echoed the criticism on Tuesday, during a conference promoting increased interaction with China, per Storm Media. He argued that part of Taiwan’s trade surplus with the US stems from the impact of US President Donald Trump’s trade war with China during his first term.

Yin highlighted a shift in Taiwan’s export landscape: exports to China and Hong Kong dropped from 43.9% of total trade in 2020 to 28.4% in the first quarter of 2025. Meanwhile, exports to the US rose from 11.8% in 2018 to 25.5% in the same period. He warned that this surge in US-bound exports, particularly in the IT sector, could signal industrial relocation.

He further warned that Taiwan’s exclusion from international trade blocs, combined with the global retreat from the WTO model, may lead to economic isolation.

An April 8 report by News&Market projected that rice, chicken, and fresh milk would be most severely affected by tariff exemptions for US agricultural imports. Fruits and vegetables would face fewer impacts.

A US rice importer, speaking anonymously, noted that US rice currently makes up roughly half of Taiwan’s duty-free rice quota, primarily for food processing and restaurant use. He warned that fully tariff-exempt US rice could retail for as little as NT$30 (US$0.90) per kilogram, compared to NT$50 for domestically produced rice.

Dounan rice polishing factory Director Chang Yao-yu (張耀裕) said US rice’s competitive pricing and tailored crop varieties could devastate Taiwan’s rice sector. Former Taiwan Riceplant Association Chair Chen Yen-ching (陳雁卿) estimated that up to 300,000 jobs could be lost if the domestic rice industry collapses.

For the meat sector, beef may see limited impact due to already low tariffs. However, poultry and pork could be significantly affected. 

Taiwan Poultry Association Secretary-General Wang Chien-pei (王建培) noted that US poultry is already a major import source. Without the current 20% tariff, US chicken could sell for NT$70 per kilogram, undercutting the NT$100 price for local products.

Wang emphasized the importance of maintaining food self-sufficiency, particularly amid growing threats from across the Taiwan Strait.

On pork, ROC Swine Association Secretary-General Pan Chien-tung (潘建同) noted that while US pork has long been competitively priced, Taiwan still supplies over 90% of its own needs, thanks to its superior quality and designation of origin. He expressed concern that lower prices and the potential loss of origin labeling could undermine domestic pork producers.

Taiwan Dairy Association Secretary-General Fang Ching-chuan (方清泉) said that experience with tariff-free dairy imports from New Zealand had already damaged the sector. He warned that offering similar benefits to the US, Taiwan’s largest liquid milk importer, could be even worse. 

However, Fang remained optimistic about the quality of Taiwanese fresh milk, which he said takes over 50 days to ship from the US. Still, he warned that Taiwan could come under pressure to change its legal definition of fresh milk, potentially making it harder to differentiate domestic and imported milk, per News&Market.

While fruit and vegetable imports are often necessary due to seasonal limitations, Taiwan Fruit Importers Association Chair Tsung Wen-tso (曾文佐) argued against granting blanket tariff exemptions to US products. He suggested setting a baseline tariff, such as the 7.5% rate for US cherries.

Feng Chia University professor Yang Min-hsien (楊明憲) urged the government to draw clear red lines in negotiations, especially for industries most vulnerable to foreign competition. He advocated a tiered approach, focusing on supporting the rice industry and other high-risk sectors.

Yang emphasized that while tariff-free imports might benefit consumers, they pose a long-term threat to Taiwan’s agricultural base and livelihoods.