Taiwan’s orchid industry weathers Trump's tariff storm

Taiwan’s orchid industry is bracing for the impact of tariff talks that could reshape production and market strategies.

For over 20 years, Taiwan has established itself as a top producer of Phalaenopsis orchids, also known as Moth Orchids. Taiwanese growers pioneered tissue culture techniques and mass production, making the flower a sought-after luxury item worldwide.

In 2024, Taiwan’s orchid exports totaled around NT$6.1 billion (US$203 million), with nearly one-third—around NT$2 billion—exported to the US. Taiwanese orchids hold a 46 percent share of the US market, frequently found in hotels, corporate lobbies, and homes across North America.

The tariff tempest

Taiwan’s orchid exports to the US have faced a sharp setback following the Trump administration’s tariff increases in 2025. In April, a 10 percent tariff was imposed, but growers managed to absorb the costs. However, when the tariff doubled to 20 percent in August, exporters called it unsustainable.

Shipments to the US dropped nearly 15 percent between April and June, before the higher tariff took effect, hurting family-run farms in Taiwan’s central and southern regions. Profit margins, already thin, have been further squeezed.

The tariff increase also created a competitive imbalance with the Netherlands, Taiwan’s main rival, holding 40 percent of the US orchid market. Dutch growers face a lower 15 percent tariff, giving them an edge despite Taiwan’s reputation for quality.

Many in the sector, including Taiwan Orchid Growers Association secretary-general Ahby Tseng (曾俊弼), have warned that the tariff disparity risks eroding Taiwan’s competitiveness. Along with currency exchange losses, the tariff disparity between Taiwan and its competitors may threaten Taiwan's two-decade-long market-leading position and years of growth in the key export sector.


Strategies of survival

Taiwan’s orchid growers have long shown resilience and adaptability. Since the 1980s, farmers shifted from traditional crops like rice and sugar to high-value floriculture, turning moth orchids into a major export and cultural symbol.

Now, faced with rising US tariffs, the industry is making new moves. TaiSugar, a state-owned company, plans to lease farmland in California to grow orchids locally, allowing exporters to bypass tariffs and maintain supply. This strategy, partly driven by pandemic-related shipping challenges, reflects a blend of horticulture and geopolitics.

Exporters are also exploring alternative markets. Australia recently lifted restrictions on Taiwanese moth orchids after lengthy quarantine talks, opening a new avenue for exports. Southeast Asia—with growing demand—and countries like Thailand, Vietnam, Indonesia, and Brazil are also being targeted for expansion. While the US remains a key market, growers are diversifying to reduce reliance on any single destination.

The role of the state

The Ministry of Agriculture (MOA) aims to help orchid farmers cope with the impact of US tariffs with financial aid and logistical support.

However, government support is seen as a temporary measure. Orchids take years to grow from tissue culture to bloom, and ongoing uncertainty over US trade policy leaves farmers worried about the future. The question remains whether the tariffs will be rolled back or become a permanent hurdle for the industry.

Su Hsiang-Hao (蘇向豪) from the Taiwan Institute of Economic Research (TIER) wrote in an article for Taiwanese media outlet Up Media that despite Taiwan's rising cost pressure, it does not necessarily mean the country is at a competitive disadvantage, highlighting the flexibility and adaptability of Taiwanese businesses.

He added that compared to other daily essential commodities, the market for orchids is relatively less price-sensitive and that customers would still take into account the reputation of brands, something he claimed to be Taiwan's advantage.

A symbol larger than itself

The struggles faced by Taiwan’s orchid growers reflect broader risks for small economies caught in the middle of major trade disputes. Orchids may appear delicate, but their production involves advanced research, specialized nurseries, and complex export networks. Tariffs disrupt this system, threatening the livelihoods of thousands of Taiwanese families.

Despite these challenges, optimism remains strong. Orchids symbolize persistence—they grow slowly, last long, and survive tough conditions. Taiwanese growers, combining scientific expertise with entrepreneurial spirit, are determined to maintain their leading position in the global market.


The garden path forward

The coming months will be crucial for Taiwan’s orchid industry. If Taipei and Washington reach a tariff relief agreement, the sector could stabilize. Without a deal, structural changes are likely: Some production may move overseas, markets in Southeast Asia could grow faster, and Taiwan may focus more on marketing its orchids as premium products worth higher prices.

More than just exports, Taiwan’s orchids represent the island’s resilience, ability to adapt, and ongoing commitment to innovation.

A grower in southern Taiwan who chose to remain anonymous told TCN, “We have bloomed before in adversity. We will bloom again.”