Trump Imposes 32% Tariff on Taiwan, Far-Reaching Impact on Kaohsiung Fastener Exports to the U.S.
- byVic

讀後心得
The United States has imposed a 32% tariff on Taiwan, impacting the export of fastener industries in Kaohsiung, such as screws and nuts, with an annual output value of 52.3 billion. The industry is deeply affected. Business owners are concerned that if Vietnam receives a zero-tariff benefit, it may lead to orders shifting to Vietnam. The Kaohsiung City Government has established a response team to try to mitigate the impact of the tariffs and assist businesses. Meanwhile, business owners are calling for collaboration between the government and enterprises to jointly face the challenges.
The United States announced a 32% tariff on Taiwan, with the value of fasteners such as screws and nuts exported from Kaohsiung amounting to approximately 52.3 billion, accounting for 92% of exports, expected to be hit the hardest. Industry players pointed out that Taiwan's main competitors in the fastener market are China and Vietnam, and if the zero-tariff conditions proposed by Vietnam are approved by the U.S., a transfer order effect may emerge. The Kaohsiung City Government promptly established a "Countermeasure Economic Policy Task Force for Equivalent Tariffs," which will seek subsidies from the Executive Yuan and assist businesses in reducing the impact of tariffs.
The Benjou Industrial Zone in Gangshan, Kaohsiung, is the largest fastener industry cluster in Taiwan, involving a wide range of products from glasses to machinery, making Taiwan the third-largest fastener exporter in the world. However, some industry players feel uneasy after Trump announced the 32% tariff. Businesses in Gangshan indicated that they may initially suspend shipments, as clients will observe whether new tariffs will be enforced, leading them to prefer pausing shipments for now.
According to statistics from the Ministry of Finance, the value of metal processing products in Kaohsiung reached 233 billion, with the value exported to the U.S. at 56.4 billion, accounting for 24%, while the value of fasteners like screws and nuts exported to the U.S. was 52.3 billion, a staggering 92%. Industry players emphasize that Taiwan's main competitors are China and Vietnam. Under Trump's tariff policy, the tariff rate for China is 54% and for Vietnam is 46%, both higher than Taiwan's 32%. If Vietnam's zero-tariff conditions are agreed upon, it will have a significant impact on Taiwan.
Some industry players believe that the fastener industry has already been affected by the 25% tariff on imported steel under Section 232, and this new 32% tariff is a further blow. Whether it’s 25% or 32%, this increase is significantly higher than the previous rates of 6.5%-8%. The Kaohsiung City Government has rolled out three major measures, including "Establishing an Industry Connection Platform," "Forming an Industry Counseling Team," and "Setting up a Labor Care Group," to assist businesses in mitigating the impact of U.S. tariffs.
As April 9 approaches, industry players are closely monitoring the situation, hoping the government can continue to communicate with the U.S. In uncertain circumstances, businesses can only adapt to changes and look forward to future developments.