U.S. Citrus Tariffs Cut to 10%; Taiwanese Farmers Fear Market Squeeze

Central News Agency, Taichung, May 22. Under the Taiwan-U.S. Trade Agreement (ART), the import tariff on U.S. citrus has been reduced from 35% to 10%. Taichung citrus farmers stated today that the tariff reduction, combined with rising raw material costs due to war, could lead to an influx of cheap imported fruit that squeezes the market for Taiwanese produce, leaving farmers in financial distress. The KMT caucus of the Taichung City Council held a press conference today with farmers from districts including Shigang. Chen Cheng-tien, executive of the caucus and chairman of the Taichung District Farmers' Association, said that after the signing of the ART, tariffs on U.S. citrus were reduced from 35% to 10%, impacting citrus farmers and urging the government to face the plight of farmers. Lu Ming-yang, chairman of the Shigang District Farmers' Association, pointed out that a 63-year-old farmer earns about NT$600,000 a year, but after deducting fertilizer, pesticides, and labor costs, less than NT$300,000 remains. If two people farm together, each earns only a little over NT$100,000. He said that they were already struggling with a 35% tariff, and a reduction to 10% would push them to the brink. Lai Yung-chin, head of the citrus production and marketing group in Shigang, mentioned that if the government relaxes tariffs, farmers will suffer, and they might eventually be forced to wander. He added that Taichung citrus is of high quality and priced higher; once cheap U.S. fruit is imported, consumers may not want to buy Taiwanese fruit, and no one will want to farm anymore. Chang Tung-hai, general manager of the Shigang District Farmers' Association, pointed out that in recent years, climate change has increased citrus cultivation costs, and the ongoing Middle East war has caused prices for packaging materials like cardboard boxes to rise. With rising prices, consumers tend to buy cheaper imported oranges, which will impact the domestic fruit market.