The US-China trade war is on the rise again, and Taiwan’s big health industry is rushing to attack the Chinese market – “cross-border zero tariffs” is the key to breaking through
Taipei, April 10, 2025
As U.S.-China trade relations remain tense, China imposed a 34% cross-border e-commerce import tariff on U.S.-made goods starting April 10. This policy impact will force the U.S. healthcare industry to significantly increase prices in the Chinese market and significantly reduce its competitiveness. It will also create unprecedented market substitution opportunities for businesses in the Asia-Pacific region, including Taiwan.
Tariffs on US products are increasing, and price advantages are no longer there
According to industry analysis, the tariff increase will cause the retail prices of U.S. health industry products in China to rise by 25-40%, significantly reducing consumers’ willingness to buy and brand market penetration. In response to this, many US exporters have begun evaluating whether to withdraw from the Chinese market or adjust their strategies, and the market will see short-term supply gaps and demand for brand substitution.
Taiwan’s big health industry takes advantage of the situation, and “cross-border zero tariffs” open up new channels
Amid drastic changes in tariff policies, health supplements, beauty care products and other health-related industries in various countries are using cross-border e-commerce channels to avoid traditional import tariffs and customs clearance barriers and deliver their products directly to Chinese consumers. This model achieves “cross-border zero tariffs” within the scope permitted by policy, becoming a golden opportunity for brands to enter China.
Compared with the sharp price increases of American products, health industry players in Taiwan and the Asia-Pacific region have quickly filled market gaps and gradually established brand awareness by relying on high-quality manufacturing, product research and development capabilities and reasonable pricing, and have become one of the most competitive alternative options in the Chinese market.
More health brands use cross-border e-commerce to ship directly to China with zero tariffs, seizing the golden opportunity for expansion / ©Canva
60% of the market share of local brands should strengthen themselves, and transformation and upgrading are urgent
Currently, about 60% of Taiwan’s health supplement market is controlled by local brands. If import tariffs are lowered in the future, European and American brands will enter the mid-price market in a big way, which will inevitably squeeze the survival space of domestic manufacturers. Under the dual pressures from both inside and outside, local enterprises can only maintain their foothold and continue to grow in the new trade order by actively transforming themselves from price competition to value creation and global layout.
Crisis is also an opportunity. Tariff pressure accelerates industry evolution
This “tariff shock” caused by the US-China trade policy is not only a challenge to the health industry in Taiwan and the Asia-Pacific region, but also a catalyst for promoting globalization and brand upgrading. Companies with R&D capabilities, brand value and flexible supply chains are expected to gain new opportunities in the restructuring of the Chinese market.
Industry observers pointed out: “Health industry players in Taiwan and the Asia-Pacific region should no longer hold on to the illusion of waiting for policy changes, but should actively adjust their international layout strategies and strengthen their own competitive physique in order to stand out in the next wave of global economic restructuring.”
