TAIPEI (TVBS News) — Taiwan is racing to protect its lucrative orchid industry from looming American trade barriers with an innovative offshore production strategy. Agriculture Minister Chen Junne-jih (陳駿季) revealed Thursday (April 10) the creation of a specialized emergency task force charged with navigating the impact of U.S. reciprocal tariffs. Officials plan to partner with the state-owned Taiwan Sugar Corporation (台灣糖業) to establish an American-based orchid production facility within the next month.
During his testimony before the Legislative Yuan (立法院), Taiwan's parliament, Minister Chen outlined comprehensive countermeasures to President Trump's trade policies. Democratic Progressive Party (DPP, 民進黨) Legislator Chen Ting-fei (陳亭妃), who represents the southern city of Tainan — a major orchid production hub — pressed the minister about protections for local growers. Chen reassured legislators that Taiwan's orchid sector benefits from sophisticated supply chain integration and an advanced relay cultivation system that could be partially replicated overseas.
The strategic pivot comes as a direct response to President Donald Trump's recent tariff declarations, which threaten to undermine Taiwan's agricultural exports. Industry stakeholders have proposed establishing American production outposts that would function as extensions of Taiwan's cultivation network. Minister Chen disclosed that his department is conducting feasibility studies in collaboration with Taiwan Sugar while simultaneously engaging the Ministry of Finance (MOF, 財政部) and financial institutions to develop funding mechanisms for these international ventures.
The agriculture minister acknowledged that potential contraction of American demand remains a key consideration in the government's contingency planning. Yet he also identified a possible silver lining: Taiwan's exporters could gain market share if Chinese competitors face steeper tariff barriers. Agriculture and Food Agency (AFA, 農糧署, Taiwan's agricultural products regulatory body) Director General Yao Shih-yuan (姚士源) provided additional context, noting that U.S. duties on Taiwanese orchids would begin at 10% — significantly lower than the 20% rate imposed on Dutch competitors. The official revealed that Taiwan Sugar already maintains a modest 5-hectare cultivation facility in California that could serve as a foundation for expansion.
