Trump imposed a 32% tariff on Taiwan, significantly impacting Kaohsiung's fastener exports to the United States.
- byVic

讀後心得
The United States has announced a 32% tariff on Taiwan, impacting the fastener industry in Kaohsiung, which includes screws and nuts. This industry has an export value of approximately 52.3 billion NTD to the United States, accounting for 92% of its exports. Industry players are concerned that if Vietnam receives zero tariffs, it will lead to a diversion of orders. The Kaohsiung City Government has established a response team to assist businesses in mitigating the impact. Legislators have also expressed that they will actively advocate for Kaohsiung's industry to minimize the shock. Businesses are currently taking a wait-and-see approach, hoping for continued communication between the government and the U.S. side.
The United States has announced a 32% tariff on Taiwan, significantly impacting the fastener industry in Kaohsiung, including screws and nuts. It is estimated that the output value of this industry in Kaohsiung exported to the U.S. is about 52.3 billion NTD, with an export ratio as high as 92%. Industry players pointed out that Taiwan's main competitors in the fastener market are China and Vietnam; if the zero-tariff conditions proposed by the Vietnamese government are approved by the U.S., it may lead to an order shift.
The Kaohsiung City Government has established a "Countermeasure Task Force for Equal Tariff Economic Strategies" to seek subsidies from the central government and assist businesses in mitigating the impact of the tariffs.
The Benjhou Industrial District in the Gangshan area is the largest concentration of the fastener industry in Taiwan. Whether for small items like glasses or large machinery, this industry is essential, forming the foundation for Taiwan to become the third-largest fastener exporter in the world. However, in light of the Trump administration's 32% tariff decision, some industry players have expressed concerns. Fastener manufacturers in Gangshan indicated that the initial impact would be a suspension of shipments, as clients would choose to wait and see how the new tariff policy unfolds.
According to statistics from the Ministry of Finance, the output value of metal processing products in Kaohsiung is about 233 billion NTD, with an export value to the U.S. of 56.4 billion NTD, accounting for 24%. More specifically, the output value of fasteners such as screws and nuts exported to the U.S. is 52.3 billion NTD, which also accounts for 92%. Industry players emphasize that Taiwan's largest competitors are China and Vietnam; under Trump's tariff policy, tariffs for China are as high as 54% and for Vietnam 46%, making Taiwan's 32% seem less advantageous. If Vietnam could offer zero tariffs, it would significantly impact Taiwan as it may lead to order shifts toward Vietnam.
Some industry players stated that the screw and nut industry is already facing difficulties in the overall economy, and this tariff policy may exacerbate their adverse situation. The government and enterprises should collaborate, with the government needing to propose more concrete measures to assist in industry upgrades, creating a better prospect together.
Additionally, some industry players reported that the fastener industry previously benefited from the prior Section 232's 25% tariff on imported steel, and this new 32% tariff will still have a considerable impact. The Kaohsiung City Government has proposed several measures, including establishing an industry connection platform, forming an industry advisory group, and setting up a labor care group, aiming to assist businesses in withstanding the impacts of these U.S. tariffs.
As the new tariffs are set to take effect on April 9, industry players are waiting and hoping that the government can continue to communicate and coordinate with the U.S. Facing an uncertain future, everyone can only respond cautiously.