This may be the last economic warfare punishment step before starting stoppages of the flow of trade in both directions, investment capital, finance, and people between the PRC and Taiwan province. Many selective sanctions are already in place in those areas as well.
But I think that total sanctions in those categories will probably start only in the case of an actual armed reunification because once those economic moves are made, political Taiwan will probably start escalating provocations, and get more anti-PRC and pro-Western extreme.
After all, it would destroy them very badly, as 38% of their exports are already dependent on China. If it's gone, they would go berserk.
So, doing all of this earlier, can just escalate the situation prematurely and maybe force China to actually start AR earlier. Now, this is good, pressure them before elections, just in the right amount to remind them of some economic realities.
Just do your best and hope for the best even though I don't think this suspension of tariff reductions will change the election result.
After all, if you control media and education, you control the minds of people. And separatists control the minds of the people there for decades. Without some harder, more concrete action, they will continue living in la-la-land indefinitely.
Btw, while on the topic of economic warfare, this Houthi situation in the Middle East shows you just how little force you can actually wage economic warfare, because freight shipping markets are seemingly always afraid like rabbits.
Probably for a few weeks to months fire rockets and missiles randomly all around the seas of Taiwan, use a few drones to damage a few Taiwanese-owned merchant vessels, and insurance premiums and cost of shipping will skyrocket, and there will be fewer and fewer foreign companies willing to ship there, in both directions. That is the most basic scenario a).
Btw, imagine how easy it would be for China's gigantic naval fleet to start forcing merchant ships for inspections in a declaration of sovereignty, those who disobeyed to be cleared by PLAN, militias, coast guards, fishing fleets transformed for this purpose, etc, get captured and escorted out or arrested and deported back effectively. This is probably a step before the total blockade of trade later.
I think there is very little chance for Taiwan to escape the economic apocalypse in this scenario, and this is even without getting its ports, transport infrastructure, and other critical infrastructure on the island destroyed itself with massive saturated attacks of cheap firepower.
The difference in industrial and firepower capacity between these two entities can't be overstated. There will also be accompanying psychological, propaganda, and cyber attacks from mainland China toward the population on the island to surrender peacefully, etc.
Taiwan is a small island that can't survive without trade and the outside world for a few months. I don't know in which universe some people think they can even hypothetically defend themselves without US help, even without the PLA having to put their feet there.
And some Western "strategists" still dream of some kind of massive military amphibious landings from WW2 style, they are delusional. In reality, Taiwan is not Ukraine, it has literally 0% chance of still staying independent if China acts in those ways I described on its own.
Being an island is not an 'advantage' in this case, but a major vulnerability that effectively makes them completely 100% easily blockaded.
Their population is also not aggressive and fighting-prone like Ukrainians, and their military is not invested enough in like the Ukraine military is. Once they end up penniless and without basic human needs in a few months of economic warfare campaign, they would surrender easily.