U.S. President Trump announced the first round of tariffs on most parts of the world, causing a severe impact on Taiwan’s economy, especially the traditional manufacturing industry. Although TSMC’s U.S. investment may enable it to obtain tariff exemptions, this is not enough to protect Taiwan’s overall economy from the impact.
Since the United States is Taiwan’s largest export market, Taiwan’s export-oriented economic system has been directly impacted. Among them, exporters of traditional manufacturing industries such as metal tools, stainless steel plates and metal fasteners face tariffs of up to 20%, as well as an additional 50% tariff on steel and aluminum products. In addition, the appreciation of the New Taiwan Dollar this year has further exacerbated the difficulties of these manufacturers. Many companies have felt the pressure, such as a screw manufacturer with a history of more than 40 years, facing customer cancellation or delay of orders.
Faced with various uncertainties in the future, the industry is generally worried, leading to more than 3,000 companies signing up for tariff briefings and seeking assistance from legal experts. The Taiwan Machinery Industries Association also issued a statement calling on the government to conduct continuous communication and negotiations with the United States, and hopes that the government can return the New Taiwan dollar exchange rate to its level in early April to reduce the pressure on companies and buy more time for adjustment.
