Rice wine, a kitchen staple in Taiwan, may face steep price hikes if reclassified under U.S. tariff pressure– a move which may drive up food prices and spark backlash.
Taiwan’s rice wine and alcohol products have unexpectedly emerged as a sticking point in ongoing trade talks with the United States over reciprocal tariffs, raising concerns across multiple sectors.
One key issue is the potential reclassification of cooking rice wine under the Tobacco and Alcohol Tax Act. Currently, the tax levied on distilled spirits is five times higher than that on cooking wine. If rice wine were reclassified, a 600ml bottle—currently sold for as little as NT$27 (US$0.83)—could see its retail price pushed past NT$100 (US$3.07) per bottle.
The implications would ripple through Taiwan’s culinary scene. Cooking rice wine is a staple in home kitchens and street-side eateries alike. A price surge would likely trigger broader cost increases for beloved dishes, such as ginger duck, a classic winter comfort food where rice wine is an indispensable ingredient.
Deputy Finance Minister Lee Ching-hua (李清華) confirmed that Washington is scrutinizing the tax gap between distilled spirits and Taiwan’s cooking rice wine. Whether the product will ultimately be affected by U.S. tariff negotiations remains uncertain—but if prices spike, public backlash and some whining is all but guaranteed.