Taiwan Fastener Industry Disrupted by U.S. Tariffs
Southern Taiwan’s fastener manufacturing hub is mobilizing resources to shield itself from escalating trade tensions with the U.S., TVBS News reports.
Kaohsiung’s crucial fastener industry continues to experience “significant disruption,” even after absorbing the initial 25% tariff increase implemented on March 12, according to the city’s commerce department. On April 2, U.S. President Donald Trump imposed an additional 34% in “reciprocal” duties on Taiwan.
Kaohsiung authorities have recommended that the Ministry of Economic Affairs officially designate the fastener manufacturing sector as an “impacted industry” for additional government assistance programs, according TVBS News.
Taiwan’s government passed a NT$88 billion (US$2.67 billion) assistance package on April 4, providing direct financial aid and administrative cost reduction measures to ease regulatory burdens. But prominent manufacturers are calling for additional assistance, fearing current aid might be insufficient to mitigate effects of the current disruption.
Kaohsiung authorities have established a specialized “Reciprocal Tariff Economic Response Task Force” to minimize U.S. tariff impacts by developing collaborative industry platforms, specialized guidance teams to provide technical assistance, and dedicated labor support groups to address workforce challenges resulting from market disruptions.
Likewise, local officials are collaborating with municipal authorities on market diversification strategies.
Nearly 33% of U.S. fastener imports worth $2.17 billion came from Taiwan in 2024, according to the U.S. Department of Commerce.
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