Taipei: Taiwan’s government is considering offering relief on carbon fees to soften the impact of new U.S. tariffs on certain companies, Environment Minister Peng Chi-ming said at the 2025 Asia Carbon Pricing Forum in Taipei. The measures under discussion include discounts, installment payments, and deferred payments on the carbon fee. These proposals aim to cushion the impact of the provisional 20-percent tariffs imposed by U.S. President Donald Trump in August on Taiwanese imports, which have affected traditional industries more than high-tech sectors.
According to Focus Taiwan, while traditional industries are expected to be most affected by the tariffs, high-tech companies such as semiconductor makers produce more carbon emissions and therefore “will have to pay more in carbon fees,” Peng noted. He emphasized that no decision has been made on any discount scheme, which will depend on the final tariff arrangements.
Taiwan’s long-delayed carbon-fee program took effect on January 1 this year. Peng stated that about 460 emitters that exceed the 25,000-metric-ton annual threshold are subject to the levy, which will be collected in 2026 and is expected to generate between NT$4 billion (US$132.3 million) and NT$4.5 billion in revenue. Approximately 90 percent of those emitters have submitted emissions-reduction plans, and about 20 percent aim to cut emissions enough to qualify for preferential rates of NT$50 or NT$100 per metric ton of carbon dioxide. The standard rate for the largest emitters could rise to as much as NT$300 per metric ton of CO2.
