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2025-04-21

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Trump imposes a 32% tariff on Taiwan, the impact on Kaohsiung's fastener exports to the United States is significant.

Trump imposes a 32% tariff on Taiwan, the impact on Kaohsiung's fastener exports to the United States is significant.
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The United States has imposed a 32% tariff on Taiwan, significantly impacting the fastener industry in Kaohsiung, with an estimated export loss of 52.3 billion. The Kaohsiung City Government has established a "Response to Counter Tariffs Economic Strategy Task Force" to provide assistance in mitigating the impact. The industry is concerned that if Vietnam obtains zero tariffs, a shift in orders may occur, exacerbating the challenges faced by Taiwan's fastener industry. The government and businesses need to collaborate as partners to jointly address this predicament.

The United States announced a 32% tariff on Taiwan, affecting the fastener industry in Kaohsiung, with an export value of approximately 52.3 billion yuan to the US, accounting for 92% of total exports. Industry players pointed out that Taiwan's main competitors are China and Vietnam. If the zero-tariff conditions proposed by the Vietnamese government receive approval from the US, there may be a phenomenon of order switching. The Kaohsiung City Government has established the "Equal Tariff Economic Response Task Force," aiming to secure subsidies from the Executive Yuan and assist businesses in mitigating the impact of tariffs.

Trump imposes 32% tariff on Taiwan

The Banzhou Industrial Zone in Gangshan, Kaohsiung, is the largest fastener industrial cluster in Taiwan, providing products needed for anything from eyeglasses to large machinery, serving as the foundation for Taiwan becoming the third-largest fastener exporting country in the world. However, in light of Trump's 32% tariff, some businesses are feeling anxious. Fasteners manufacturers in Gangshan indicated that the first impact might be a halt in shipments, as customers may choose to delay shipping to observe the potential new tariffs.

According to statistics from the Ministry of Finance, the value of metal processing products in Kaohsiung is 233 billion, with an export value of 56.4 billion to the United States, accounting for 24%. Among these, the export value of fasteners such as screws and nuts to the US is 52.3 billion, which accounts for as much as 92%. Industry players pointed out that the current competitors for Taiwan's fasteners are China at 54% and Vietnam at 46%, both exceeding Taiwan's 32%. If Vietnam's zero-tariff conditions are approved, the impact on Taiwan will be significant.

Some industry players believe that the current tariff is much higher than the past rates of 6.5%-8%. Therefore, the Kaohsiung City Government has activated the "Equal Tariff Economic Response Task Force," proposing three measures including establishing an industry linkage platform, forming an industry advisory group, and setting up a labor care group to assist businesses in mitigating the impact of the US tariffs. Local legislators expressed they will actively appeal to the central government to minimize the impact.

With only a few days left until the policy takes effect on April 9, industry players are observing and hoping the government can continue communication with the US. Facing this uncertain situation, they can only respond step by step.

Trump imposes 32% tariff on Taiwan