Trump imposes 32% tariff on Taiwan, greatly affecting Kaohsiung fastener exports to the United States.
- byVic

讀後心得
The United States imposes a 32% tariff on Taiwan, significantly affecting the fasteners industry in Kaohsiung, with an export value of 52.3 billion, accounting for 92% of exports to the U.S. Industry players are concerned that if Vietnam successfully negotiates zero tariffs, it will lead to an order transfer effect. The Kaohsiung City Government has established an "Economic Countermeasure Task Force for Equitable Tariffs" to help businesses mitigate the impact and seek subsidies from the Executive Yuan. Industry players are calling on the government to provide specific countermeasures to assist in industry upgrades and meet challenges.
The United States announced a 32% tariff on Taiwan, leading to an estimated impact of approximately 52.3 billion in exports for fasteners such as screws and nuts from Kaohsiung, which accounts for 92% of exports. Industry players pointed out that Taiwan's biggest competitors in the fastener market are China and Vietnam. If the zero-tariff conditions proposed by the Vietnamese government are approved by the U.S., it could trigger a shift in orders.
The Kaohsiung City Government has established a "Countermeasure Task Force for Equal Tariff Economic Response," aiming to secure subsidies from the Executive Yuan and assist businesses in reducing the impact of tariffs.
In the Benjhou Industrial Zone in Kaohsiung's Gangshan district, which is the largest fastener industrial cluster in Taiwan, covering a wide range of products from eyewear to heavy machinery, Taiwan has established itself as the third-largest fastener exporter globally. However, the tariff policies announced by Trump have caused significant unease among some businesses. Fastener manufacturers in Gangshan stated, "Initially, the likely impact will be a suspension of shipments, as customers will wait to see how the new tariff policy unfolds." According to statistics from the Ministry of Finance, the output value of metal processing products in Kaohsiung is 233 billion, of which exports to the U.S. amount to 56.4 billion, accounting for as much as 24%, while the export value of fasteners such as screws and nuts amounts to 52.3 billion, reaching 92% of the total.
Industry players indicate that Taiwan's main competitors in the fastener market are China and Vietnam. In the face of the U.S. tariff policy, the tax rates for both China and Vietnam are higher than Taiwan's, so there was not much cause for concern originally; however, if the Vietnamese government implements a zero-tariff policy, it would have a significant impact on Taiwan. Industry players emphasize, "If Vietnam implements zero tariffs, the impact on Taiwan will undoubtedly be very severe."
In addition, some industry players believe that the impact on fasteners is not only limited to the 32% tariff but also includes the previously imposed 25% tariff on steel. Whether it is 25% or 32%, both are significantly higher than the previous rates of 6.5%-8%. The Kaohsiung City Government has proposed three major measures, including establishing an industry connection platform, forming an industry advisory group, and setting up a labor care group to help businesses mitigate the impact of the U.S. tariffs.
As April 9 approaches, the effective date of the new tariffs, industry players are closely monitoring the progress of communications between the government and the U.S., hoping to reduce the impact on the industry.