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2025-04-21

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Trump imposes a 32% tariff on Taiwan, severely impacting Kaohsiung's hardware industry.

Trump imposes a 32% tariff on Taiwan, severely impacting Kaohsiung's hardware industry.
讀後心得
The United States has imposed a 32% tariff on Taiwan, impacting the fastening industry in Kaohsiung, which includes screws and nuts, with an export value of approximately 52.3 billion, accounting for 92% of its market in the U.S. Industry players are concerned that if Vietnam receives zero tariffs, it will affect the flow of orders. The Kaohsiung City government has established a task force to help alleviate the tariff impact on businesses. Legislators have also expressed support, hoping to reduce the impact. Currently, businesses are mostly in a wait-and-see mode, expecting the government to continue communicating with the U.S. side.

The U.S. government announced a 32% tariff on Taiwan, with the value of fasteners such as screws and nuts exported from Kaohsiung City amounting to approximately 52.3 billion yuan, accounting for 92% of the exports, and is estimated to face the greatest impact initially. Industry players point out that Taiwan's main competitors in the fastener market are China and Vietnam; if the Vietnamese government's proposed zero-tariff conditions are approved by the U.S. side, it could lead to order shifting. The Kaohsiung City government has established a "Task Force for Economic Response to Reciprocal Tariffs" to seek subsidies from the Executive Yuan and assist businesses in mitigating the impact of tariffs.

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

Onjō Industrial Park in Kaohsiung's Gangshan District is the largest fastener industry cluster in Taiwan, with fasteners used in everything from small items like glasses to large machinery, which has established Taiwan as the third-largest fastener exporter in the world. However, with Trump's announcement of a 32% tariff on Taiwan, some industry players feel helpless. Businesses in Gangshan indicate that they may initially suspend shipments, as customers will closely monitor the new tariff policies and are likely to delay orders.

According to statistics from the Ministry of Finance, the value of metal processing products in Kaohsiung is 233 billion yuan, with exports to the U.S. reaching 56.4 billion yuan, accounting for 24%, of which screws and nuts account for 52.3 billion yuan, or a staggering 92%. Industry players state that Taiwan's biggest competitors in the fastener market remain China and Vietnam. Under Trump's reciprocal tariff policy, China's tariff is 54%, Vietnam's is 46%, both higher than Taiwan's 32%, which would not have raised excessive concerns, but if the Vietnamese government successfully negotiates a zero-tariff agreement, it would have a significant impact on Taiwan. If Vietnam achieves a zero tariff, it would greatly impact Taiwan, as industry players point out that if Taiwan's tariff remains at 32% or higher, a wave of order shifts will occur.

Furthermore, industry players also mention that the fastener industry is already in difficulty, and this tariff will only worsen the situation. The government and businesses should collaborate effectively to clearly outline how to provide support, while industry players also need to upgrade their industry in order to jointly create a better future.

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

Although some industry players believe that fasteners should be counted under the previous 25% tariff on imported steel according to Section 232, and should not be included in this 32%, regardless of whether it is 25% or 32%, it is significantly higher than the previous 6.5-8%. The Kaohsiung City government has formed the "Task Force for Economic Response to Reciprocal Tariffs," proposing three major measures: "establishing an industry connection platform," "forming an industrial advisory group," and "setting up a labor care group" to assist businesses in alleviating the impact of the U.S. tariffs.

Legislators from the Democratic Progressive Party (DPP) stated that they will actively advocate for Kaohsiung's various industries at the central level to minimize the possible impact. Especially the screw industry will be significantly affected, and they will continue communication and coordination with the Ministry of Economic Affairs. With only a few days left until the implementation on April 9, industry players are watching the situation, hoping the government will continue communicating with the U.S. side. In an uncertain situation, they can only adapt to the developments.