Trump imposes a 32% tariff on Taiwan, which has a profound impact on Kaohsiung's fastener exports to the United States.
- byVic

讀後心得
The United States imposes a 32% tariff on Taiwan, which has a profound impact on the screw and nut industry in Kaohsiung, as exports to the U.S. account for as much as 92%. The Kaohsiung City Government has established a "Countermeasure Task Force for Equal Tariff Economic Strategies" to assist businesses in alleviating the impact. Business owners are concerned that if Vietnam obtains zero tariff benefits, it will result in a shift of orders, further intensifying competition. Collaboration between the government and enterprises is the key to the future, and there is hope to overcome the challenges together.
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, which accounts for 92% of exports. As a result, a preliminary assessment indicates that this sector will be the most severely affected. Industry insiders point out that Taiwan's fastener industry faces major competitors in China and Vietnam. If the zero-tariff conditions proposed by the Vietnamese government receive U.S. approval, it could trigger a shift in orders.
In response, the Kaohsiung City Government has established a "Task Force for Economic Strategies in Response to Equal Tariffs," aiming not only to secure support from the Executive Yuan but also to assist businesses in mitigating the impact of the tariffs.
In Kaohsiung's Gangshan, the Industrial Zone is the largest fastener industry cluster in Taiwan, covering a range of product needs and solidifying Taiwan's position as the third-largest fastener exporter globally. However, after Trump announced the 32% tariff on Taiwan, some companies expressed concern. Fastener manufacturers in Gangshan stated that the initial impact may be due to customers pausing orders to observe the situation regarding the new tariffs.
According to statistics, the output value of metal processing products in Kaohsiung reached 233 billion, with exports to the U.S. valued at 56.4 billion, accounting for 24%. Fasteners such as screws and nuts exported to the U.S. are valued at 52.3 billion, making up a staggering 92%. Industry members noted that under Trump's equal tariff policy, China faces a tariff of 54% and Vietnam 46%, both higher than Taiwan's 32%. If the Vietnamese government's zero-tariff policy is successfully negotiated, it might lead to a significant shift in orders.
One company representative mentioned, "If Vietnam can enjoy zero tariffs, the impact on Taiwan will be very significant. If Taiwan’s tariff remains at 32% or higher, customers will definitely choose to shift to Vietnam." Another representative stated that the screw and nut industry has already faced challenges prior to this, and the new tariffs will undoubtedly exacerbate the difficulties, urging the government and businesses to collaborate closely to enhance industry competitiveness for a better future.
Moreover, some representatives indicated that the tariff issues in the fastener industry should be compared with the previous 25% tariff imposed on imported steel under Section 232. 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 strategies, including "Establishing an Industry Connection Platform," "Forming an Industry Guidance Team," and "Setting Up a Labor Care Group" to help businesses reduce the impact of the U.S. tariffs.
All parties involved have expressed that they will actively advocate for Kaohsiung's industries and strive to minimize potential impacts, while relevant industry members stated that under the imminent changes in policies, they can only patiently wait for the government's follow-up communication results.