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2025-04-21

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Trump imposes 32% tariff on Taiwan, massive impact on Kaohsiung fastener exports to the United States.

Trump imposes 32% tariff on Taiwan, massive impact on Kaohsiung fastener exports to the United States.
讀後心得
The United States has imposed a 32% tariff on Taiwan, affecting the fastener industry in Kaohsiung, with an export value of 52.3 billion, accounting for 92% of its exports. Industry players are concerned that if Vietnam receives zero tariffs, there will be an order-switching effect. The Kaohsiung City Government has established a "Task Force for Economic Countermeasures Against Equivalent Tariffs" to help alleviate the impact of tariffs and seek assistance. Industry players are calling on the government to cooperate with businesses to tackle the challenges and to continue communication with the U.S. side.

The United States announced a 32% tariff on Taiwan, and the output value of fasteners such as screws and nuts exported from Kaohsiung to the U.S. is about 52.3 billion, accounting for 92% of total exports. Therefore, preliminary estimates suggest a significant impact. Industry players have stated that Taiwan's main competitors in the fastener market are China and Vietnam. If the zero-tariff condition proposed by the Vietnamese government gains approval from the U.S. side, it could lead to a shift in orders. To address this challenge, the Kaohsiung City Government has established the "Economic Response Task Force for Counter Tariffs" to seek assistance from the Executive Yuan and to help businesses mitigate the impact of tariffs.

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

The Benzo Industrial Zone in Gangshan, Kaohsiung, is the largest fastener industry cluster in Taiwan, covering a wide range of needs from eyeglasses to large machinery, laying the foundation for Taiwan as the world's third-largest fastener exporter. However, following Trump's announcement of the 32% tariff on Taiwan, some businesses are feeling uneasy about the future. A fastener manufacturer in Gangshan pointed out that the first impact might be a halt in shipments, as customers will wait to see the new tariff policy, thus opting to temporarily suspend orders.

According to statistics from the Ministry of Finance, the output value of metal processing products in Kaohsiung reached 233 billion, with an output value of 56.4 billion exported to the U.S., accounting for 24% of the total. Among these, fasteners like screws and nuts have an output value of 52.3 billion exported to the U.S., representing as much as 92%. Industry players emphasize that Taiwan's fastener industry primarily faces competition from China and Vietnam. According to the current tax rates, China's rate is 54% and Vietnam's is 46%, both of which are higher than Taiwan's 32%. Initially, the industry did not need to worry too much about this, but if the Vietnamese government indeed proposes zero tariffs, it would have a significant impact on Taiwan, and orders may shift to Vietnam.

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

Some industry players believe that the challenges facing the fastener industry have actually existed for a long time, particularly affected by the past 25% tariff on steel under Article 232. Whether it is 25% or 32%, these figures are much higher than the previous 6.5% to 8%. To mitigate the impact of this wave of U.S. tariffs, the Kaohsiung City Government has already established the "Economic Response Task Force for Counter Tariffs," proposing three main strategies: establishing an industry connection platform, forming an industry guidance team, and setting up a workers' care group. The industry hopes the government can continue effective communication with the U.S. to reduce potential impacts and lower uncertainty.

As the implementation of the new tax rate on April 9 approaches, industry players are closely monitoring the situation's development and hope the government can continue to provide support to address the challenges that may arise in the future.