Taiwan Allies International Protection and Enhancement Initiative (TAIPEI) Act of 2018 This bill directs the Department of State to periodically report to Congress regarding U.S. actions to strengthen Taiwan's international alliances around the world. The State Department may consider: supplementing or reducing the U.S. diplomatic presence to provide incentives to countries considering or taking steps to alter or downgrade ties with Taiwan; and expanding, reducing, or terminating economic and military assistance to countries that have reduced or are anticipating reducing ties with Taiwan. The State Department shall consult with Congress prior to taking any such action.