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

讀後心得
The United States has imposed a 32% tariff on Taiwan, significantly impacting the fastener industry in Kaohsiung, where products like screws and nuts account for approximately 52.3 billion NT dollars in export value, which constitutes 92% of their exports to the U.S. Industry players are concerned that if Vietnam secures duty-free conditions, there will be an order transfer effect. The Kaohsiung City Government has established a "Countermeasures Task Force for Equivalent Tariffs" to assist companies in mitigating the impact. Furthermore, legislators have stated that they will work hard to reduce the influence of tariffs. Businesses are hoping for ongoing communication between the government and the U.S. side.
The United States announced a 32% tariff on Taiwan, resulting in a significant impact on the fastener industry in Kaohsiung, where products such as screws and nuts account for about 52.3 billion NTD in exports to the U.S., comprising 92% of total export value. Industry players point out that Taiwan's main competitors are China and Vietnam; if the Vietnamese government successfully negotiates zero tariffs, it is certain to trigger a shift in orders. The Kaohsiung City Government has established a "Countermeasure Team for Equal Tariff Economic Strategies" to not only secure subsidies from the Executive Yuan but also to assist businesses in reducing the tariff impact.
The Bonzhou Industrial Zone in Gangshan, Kaohsiung, is the largest fastener industry cluster in Taiwan, relied upon for everything from eyeglasses to large machinery. This has also made Taiwan the third-largest fastener exporting country in the world. However, with Trump's announcement of a 32% tariff on Taiwan, many industry players feel that the prospect has become bleak. Business owners in Gangshan have indicated that customers may choose to pause shipments to observe the impact of the new tariff policy.
According to statistics from the Ministry of Finance, the output value of metal processing products in Kaohsiung is 233 billion NTD, with exports to the U.S. worth 56.4 billion NTD, accounting for 24%. Among these, the output value of screws and nuts exported to the U.S. reaches 52.3 billion NTD, making up 92% of the total. Industry players further expressed that Taiwan's main competitors are China and Vietnam. Facing tariffs of 54% from China and 46% from Vietnam, Taiwan's 32% tariff rate may not seem high, but if Vietnam pursues zero tariffs, it will have a massive impact on Taiwan.
Some industry players believe that the fastener industry has already been affected by the previous Section 232 and 25% tariff impacts, and this new 32% tariff will only exacerbate the difficulties. In response to the recent U.S. tariff impacts, the Kaohsiung City Government has proposed several policy measures, including the establishment of an industry connection platform, forming an industry guidance team, and setting up a labor care group to help businesses reduce their impacts. Local legislators stated they will continue to coordinate with the Ministry of Economic Affairs to advocate for all industries in Kaohsiung, hoping to minimize potential impacts. As the tariff policy is set to be implemented on April 9, business owners are closely monitoring the situation and hope the government can maintain communication with the U.S.