Taiwan’s orchid growers brace for US tariff blowup.
US Tariffs on Taiwanese Orchids Rise to 20%
Lee Tsang-yu, a 61‑year‑old orchid farmer in southern Tainan, has seen the U.S. import tariff on his seedlings jump from zero to 20% since Donald Trump began the global trade war. Lee is turning the challenge into an opportunity by expanding into new markets while cutting shipments to the United States.
Strategic Market Shifts
- Thailand – Lee is cultivating a fresh market for his moth orchids.
- Vietnam, Indonesia, Brazil – He is steadily growing sales in these countries.
- United States – Shipments are down by 15% after the tariff hike.
Lee’s company, Charming Agriculture, runs four greenhouses the size of rugby fields in Houbi, a district of Tainan. The island’s over 300 orchid growers are among the world’s largest producers of the thick‑leafed Phalaenopsis species, which dominate exports.
Tariff Impact and Consumer Choices
The U.S. had almost no tariff on Taiwanese orchids until Trump imposed a 10% tariff on nearly every trading partner in April. A temporary 20% levy announced last week is too burdensome for growers. Ahby Tseng, 53, secretary‑general of the Taiwan Orchid Growers Association said the U.S. rivals the Netherlands, which faces a lighter 15% tariff. Tseng highlighted the five‑percentage‑point difference as a significant hurdle.
“Consumers can choose not to buy or buy other flowers,” Tseng said. He added that stockpiling orchids in a warehouse is not an option because the plants keep growing.
Economic Concerns Beyond Tariffs
Lee worries more about the broader U.S. economy since Trump took office. “Everything has become more expensive in the U.S., and consumer spending is shrinking,” he said. He noted that U.S. shipments accounted for 45% of his exports before he cut them by 15% in late May.
Optimism and Long‑Term Outlook
Lee believes that expanding into other markets will gradually offset this impact. He argues that Taiwanese orchids can last longer than Dutch plants and notes that Trump “won’t be president forever.”
Key Facts Collected
- U.S. tariff on Taiwanese orchids: 20%
- Exporter: Lee Tsang‑yu, 61, owner of Charming Agriculture
- Current U.S. market share: 45% of total exports before cut
- U.S. shipments in 2024: NT$2 billion (US$204 million)
- New markets: Thailand, Vietnam, Indonesia, Brazil
