Trump imposes a 32% tariff on Taiwan, severely impacting the Kaohsiung fastener industry.
- byVic

讀後心得
The United States imposes a 32% tariff on Taiwan, affecting the fastener industry in Kaohsiung, which includes screws and nuts. The export value of this industry to the United States reaches 52.3 billion, accounting for 92%. Businesses are concerned that if Vietnam offers zero tariffs, it may lead to a transfer order effect. The Kaohsiung City Government has established a "Response to Equal Tariff Economic Countermeasure Task Force" to help mitigate the impact of tariffs. Industry operators are呼籲 the government and enterprises to collaborate in facing the challenges together.
The United States announced a 32% tariff on imports from Taiwan. The value of fasteners like screws and nuts exported from Kaohsiung to the U.S. is approximately 52.3 billion, accounting for 92% of exports, with an initial assessment estimating it will be the most severely impacted. Industry representatives stated that Taiwan's biggest competitors in the fastener industry are China and Vietnam. If the Vietnamese government can propose zero tariff conditions and gain U.S. approval, a transfer order effect may occur. In response to this situation, the Kaohsiung City Government has established the "Economic Response Task Force for Equal Tariffs," which aims to secure subsidies from the Executive Yuan and assist businesses in reducing the tariff impact.
The Benjou Industrial Park in Gangshan, Kaohsiung, is the largest fastener industrial cluster in Taiwan. Products ranging from eyeglasses to large machinery require these products, establishing Taiwan as the third-largest fastener exporter in the world. However, in the face of the 32% tariff announced by Trump, some industry stakeholders expressed concerns. Fastener manufacturers in Gangshan indicated that the first impact may be a halt in shipments, as customers may wait and see what the potential new tariff policies will be, leading to a tendency to temporarily cease shipments.
According to statistics, the value of metal processing products in Kaohsiung is 233 billion, with 56.4 billion exported to the U.S., accounting for 24% of total exports. Among them, the value of fasteners such as screws and nuts exported to the U.S. is as high as 52.3 billion, representing 92%. Industry representatives stated that Taiwan's main competitors in the fastener industry are China and Vietnam. According to current policies, China's tariff is 54%, Vietnam's is 46%, both higher than Taiwan's 32%. Therefore, if Vietnam can offer zero tariff conditions, the impact on Taiwan will be considerable.
Some industry representatives believe that the challenges faced by the fastener industry are not solely due to this tariff policy. Previously, under Section 232, a 25% tariff had already been imposed on imported steel. However, whether it is 25% or 32%, these rates are significantly higher than the previous 6.5-8%. To address this, the Kaohsiung City Government has created the "Economic Response Task Force for Equal Tariffs," proposing three major measures: "Establishing an Industry Connectivity Platform," "Forming an Industry Guidance Group," and "Setting up a Labor Care Group," to assist businesses in mitigating the impact of U.S. tariffs.
In response, legislators from the Democratic Progressive Party stated they would actively voice their concerns at the central government level to minimize potential impacts, especially for the screw industry, and will continue to coordinate and communicate with the Ministry of Economic Affairs. With only a few days left until the implementation date of April 9, industry stakeholders are currently observing the situation, hoping for continued communication between the government and the U.S. to make appropriate responses under uncertain conditions.