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2025-04-20

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Trump's tariff war affects Taiwan! He reveals a local industry 'facing extinction.'

Trump's tariff war affects Taiwan! He reveals a local industry 'facing extinction.'
讀後心得
Recently, U.S. President Trump announced a new tariff policy, imposing tariffs of up to 32% on certain products from Taiwan. Former Taoyuan City Council member Wang Haoyu described this move as a "death sentence" for Taiwan's textile industry. He pointed out that as Chinese textiles face obstacles in being sold in the U.S., these products may flood the Taiwanese market, causing serious impacts on local industries. He warned that if Chinese low-priced products further monopolize the market, it will put greater survival pressure on domestic businesses. The Executive Yuan announced that it will launch a support plan worth 88 billion NTD to help affected industries face these challenges, with particular focus on small and medium-sized enterprises and traditional industries.

The US President recently announced a new tariff policy, which has impacted global trade, imposing tariffs of up to 32% on certain products from Taiwan. Former Taoyuan City Councilor bluntly stated that this decision is equivalent to a "death sentence" for Taiwan's textile industry. He pointed out on social media that the US has imposed a high tariff of 50% on small packages exported from China, making it difficult for Chinese textiles to enter the US market. These unsold products may shift to Taiwan, which could severely affect the local textile industry. He warned that if the Taiwanese market is flooded with low-priced Chinese products, the survival space for local operators will be squeezed, potentially triggering a more severe industrial crisis.

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The councilor further analyzed that Trump's new tariff policy will directly affect the cross-border e-commerce industry in mainland China, including well-known platforms like Alibaba and SHEIN. The high tariffs make it impossible for these operators to sell products to the US, forcing them to significantly clear their inventory to reduce losses. In this situation, a large quantity of Chinese textiles (such as clothing, socks, towels, etc.) may flood the Taiwanese market. Meanwhile, if China's e-commerce platforms such as Taobao and JD introduce "free shipping to Taiwan" promotions, it will further increase the impact on the local textile industry.

He emphasized that such developments are essentially a "death sentence" for Taiwan's textile industry. The government held a press conference on the 4th, titled "Response to US Tariffs: Support Plan for Our Export Supply Chain," announcing the promotion of multiple measures to assist affected industries in coping with challenges. The total budget for this program is NT$88 billion, with the industrial sector receiving NT$70 billion in support and agriculture receiving NT$18 billion in subsidies.

The government stated that these 20 measures will cover various forms of support, including providing financing and loan benefits, increasing subsidies, and offering tax reductions. In addition, the government will assist companies in enhancing their export capabilities and expanding into international markets, further strengthening the global competitiveness of the industry. Regarding small and medium-sized enterprises and traditional industries, the government will give special attention and develop relevant support plans to mitigate the impact of tariffs.