TAIPEI (Taiwan News) — Taiwanese steel exporters are facing uncertainty after the US raised tariffs on imported steel and aluminum from 25% to 50%, a move that could sharply affect pricing and demand.

With the hike taking effect on Wednesday, profits for Taiwanese exporters will depend on how US prices respond in the coming weeks, per CNA. China Steel Chair Hwang Chien-chih (黃建智) said the hike has prompted a cautious stance among US buyers, with many waiting to see if steel prices will climb – potentially giving imports a relative edge.

Huang noted that Taiwan’s downstream suppliers are still seeking clarification on whether the new 50% rate applies to derivative products. He warned that if US steel prices do not rise in response, Taiwanese exports could become too costly to remain competitive.

China Steel said its direct exports to the US are limited, so the impact is manageable. However, the broader concern is competitiveness, which could strain supply chains for downstream customers. The company said it is evaluating possible countermeasures.

Yieh Phui Enterprise, which derives 30% of its sales from the US, said short-term pressure is mounting. Customers are already seeking price adjustments, and the company is watching closely for signs of order disruptions.

Despite prior headwinds – including earlier tariff hikes and an unfavorable exchange rate – Yieh Phui believes the US market still depends on certain imports due to limited local supply and quality gaps. If US prices rise further, that may ease pressure on Taiwanese suppliers.

Chung Hung Steel said the policy is already affecting shipments and orders in production, with buyers now facing an extra 25% cost. With demand trends unclear, most customers are holding off on new purchases, it added.