TAIPEI (Taiwan News) — Taiwanese businesses in Vietnam are adjusting their strategy following US President Donald Trump’s high tariff hike.
Vietnam was hit with a 46% tariff under new US trade measures, triggering concern among exporters, per BBC. Though a 90-day pause has been announced, the drawn-out nature of trade talks leaves little reassurance for Taiwanese manufacturers in Vietnam, per CNA.
Cast iron cookware maker Brico Industry from Tainan said over 40% of its exports go to the US, making the tariff risk especially painful. Brico Industry Co-Chair Lo Shih-liang (羅世良) described the reversals in policy as an emotional rollercoaster, with little relief in sight.
“I work during the day and watch US news until 3 or 4 a.m.,” Lo said, adding that the company is now coordinating with clients on inventory and shipping timelines during the grace period. Some clients are advancing orders or shifting shipments through Mexico for greater flexibility.
Lo said Brico is working to lower its US business share from 45% to 30% by exploring new markets in Europe and the Middle East. The goal is to diversify exports and reduce geopolitical risks.
He added that traditional manufacturers cannot absorb tariffs as high as 46% without drastic efficiency gains. The company is investing in optimizing production to cut costs further.
Taichung-based Johnson Health Tech, which began expanding its Vietnam factory in Bac Ninh last year, said the 46% tariff was a shock given strong Vietnam-US trade ties. Plant General Manager Sun Chi-an (孫其安) admitted he has not been sleeping well, keeping a close eye on international news for updates.
Sun said the company will avoid hasty moves that could disrupt quality or production. Despite tensions, demand remains stable, so staffing and materials procurement continue as planned.
He said he expects tariffs to remain, even if negotiations succeed, and plans to explore cost-sharing options with suppliers. If necessary, some of the increased burden may be passed on to clients.
Despite the strain, Sun sees competitive advantages ahead, noting most rivals rely on Chinese supply chains and face even steeper tariffs. Johnson’s brand and distribution channels give it more flexibility to respond to changing trade conditions.
