TAIPEI (Taiwan News) — Taiwan’s faucet industry is one of the first to be affected by the Trump administration's 32% tariff on Taiwanese goods, with US customers suspending shipments.
The industry achieves an annual output value of NT$60 billion (US$1.8 billion), 60% of which is sold to the US, per PTS. The industry is waiting to see how the Taiwanese government responds and what supporting measures will be extended to affected industries.
Long Tai Copper, a faucet manufacturer in Changhua, relies on exports for 98% of its business, with the North American market accounting for 80%. Some customers have notified the company to suspend shipments, and it is uncertain who will pay the 32% tariff.
Wu Yi-da (吳佾達), chair of Long Tai Copper, said, “Our customers are very nervous now. They have asked us to stop shipping and pay the tariffs ourselves, which is impossible.”
Chang Chia-lieh (張家烈), chair of the Plumbing Association of Taiwan, said, "There are goods on ships that will arrive in the US after Wednesday, when the tariffs are expected to be increased. It is still unclear if 32% tariffs will be imposed. Now there is no need to ship goods, because… you will be losing money."
Lin Por-fong (林伯豐), chair of the Third Wednesday Club (三三會), a trade association of entrepreneurs, said, "Generally speaking, companies can only earn a maximum profit of 10%. If they need to pay tariffs of 32%, they will lose 20%. Which company can afford to lose 20% on its products?"
While Taiwan’s faucet industry is disappointed with order suspensions, the US announced an exemption on the US content of a product if it accounts for more than 20% of the declared value of the imported good. In other words, raw materials, parts, components, technology, or designs coming from the US will not be subject to the 32% tariff.
This exemption will help lessen the impact on Taiwan’s Information and Communication Technology (ICT) industry, according to Market Intelligence and Consulting Institute analyst John Chen (陳子昂). Chen estimated that software and chips account for more than 20% of the cost of most ICT products.
While Taiwan's electronics manufacturers may escape the full brunt of the new tariffs, the outlook for traditional industries is uncertain.
