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2025-04-21

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Trump imposed a 32% tariff on Taiwan, causing significant impact on Kaohsiung's hardware exports to the United States.

Trump imposed a 32% tariff on Taiwan, causing significant impact on Kaohsiung's hardware exports to the United States.
讀後心得
The United States has imposed a 32% tariff on Taiwan, impacting the fastener industry in Kaohsiung, including screws and nuts, with an export value of approximately 52.3 billion yuan, accounting for 92% of exports. Business operators are concerned about the risk of shifting orders to Vietnam, as Vietnam may propose zero-tariff conditions. The Kaohsiung City Government has established a "Economic Response Task Force for Equal Tariff Measures" to assist businesses in coping with the impact and to seek subsidies. Industry operators indicate that the fastener sector was already facing difficulties, and the new tariff policy may further exacerbate the situation. The government will coordinate further with the U.S. side, hoping to reduce losses.

The United States announced a 32% tariff on Taiwan, with the export value of fasteners such as screws and nuts from Kaohsiung to the U.S. being approximately 52.3 billion, accounting for 92% of total exports, making the impact particularly evident. Industry players pointed out that Taiwan's main competitors in the fastener market are China and Vietnam. If the Vietnamese government proposes a zero-tariff condition and receives U.S. approval, a transfer order effect may occur. In response to this situation, the Kaohsiung City Government has established a "Tariff Countermeasure Economic Strategy Task Force" hoping to secure subsidies from the Executive Yuan and assist businesses in reducing the impact of tariffs.

Trump Imposes 32% Tariff on Taiwan, Major Impact on Kaohsiung Fastener Exports to U.S.

The Gangshan Benjou Industrial Zone in Kaohsiung is the largest fastener industrial cluster in Taiwan, with products ranging from small items like glasses to large machinery equipment, laying the foundation for Taiwan to become the world's third-largest fastener exporter. However, after the U.S. announced the 32% tariff on Taiwan, industry players expressed concern. Fastener manufacturers in Gangshan stated that the initial impact might be a suspension of shipments as clients will observe whether new tariff policies will emerge. According to related statistics, the output value of Kaohsiung's metal processing products is 233 billion, of which the export value to the U.S. is 56.4 billion, accounting for 24%. The export value of screws and nuts is 52.3 billion, representing a high proportion of 92%.

Industry players pointed out that Taiwan’s fasteners face their biggest competitors under the tariff policy from China and Vietnam, with China's current tariff at 54% and Vietnam's at 46%, both higher than Taiwan's 32%. If the Vietnamese government can negotiate with the U.S. for a zero tariff, it would significantly impact Taiwan. One industry player mentioned that if Vietnam has a zero tariff, it would lead to a shift in orders, further affecting the Taiwanese market.

Trump Imposes 32% Tariff on Taiwan, Major Impact on Kaohsiung Fastener Exports to U.S.

Although some industry players believe that the fastener industry has already been impacted by Section 232, rather than this 32% tariff, both the 25% and 32% tariffs are significantly higher than the previous 6.5-8%. The city government has proposed three major measures to assist businesses in mitigating the impact of U.S. tariffs, including establishing an industry connection platform, forming an industry guidance team, and setting up a labor care group. Relevant lawmakers have also indicated that they will work together to strive for a reduction in the impact on various industries.

With only a short time remaining until the implementation on April 9, industry players are cautiously observing and hope the government will continue dialogues with the U.S. to understand future situations and prepare to gradually respond to the upcoming challenges.