TAIPEI (Taiwan News) — The Taiwan Tea Manufacturers Association expressed concern about 32% US tariffs and the implementation of new pesticide testing methods, calling upon the government to pursue bilateral negotiations to reduce the impact on the domestic tea industry.

President Lai Ching-te (賴清德) has pledged trade negotiations with the US, with a team already in Washington, D.C., to conduct negotiations. While successful bilateral negotiations could reduce the impact of tariffs, they may do little to change new pesticide regulations, per CNA.

TTMA said it is concerned about new testing methods to detect the pesticide thiabendazole, which is frequently used on vegetable and fruit crops. Stricter pesticide control will impact Taiwan’s exports as many are blended teas sourced from different countries.  

The association said that tea blending is a skill and specialty of many domestic tea producers. Sourcing teas from neighboring countries can be complicated by differing standards regarding pesticide use, potentially compromising the finished product that is often exported from Taiwan to the US, where it will face a 32% tariff.

The Ministry of Agriculture said it is working to diversify the export market for Taiwan tea to other countries. MOA said it has signed bilateral agreements regarding mutual recognition of organic equivalence with many countries in recent years and is pursuing more trade agreements.

The MOA said that in 2024, Taiwan's total tea exports were 6,285 tonnes with an export value of NT$24.7 billion (US$74.82 million), including 1,959 tonnes exported to the US with an export value of US$21.98 million.

Regarding other markets, 766 tonnes were exported to China with an export value of US$13.09 million; 609 tonnes were exported to Japan with an export value of US$7.07 million; 589 tonnes were exported to the Philippines with an export value of US$3.38 million; and 429 tonnes were exported to Hong Kong with an export value of US$6.58 million.