Taipei, April 17 (CNA) If the United States implements the 32 percent “reciprocal” tariffs on Taiwanese goods it announced earlier this month, Taiwan’s manufacturing sector is likely to see a 5 percent drop in production value, Kao Shien-quey (高仙桂), deputy head of the National Development Council (NDC), said Wednesday.
In a speech delivered during a regular meeting of the Third Wednesday Association, an organization formed by Taiwanese business owners and leaders, Kao said the 32 percent import duty on Taiwan could reduce industrial exports to the U.S. by 26 percent.
It could also lead Taiwanese manufacturers to relocate their factories to Mexico and other countries, impacting Taiwan’s production capacity and hurting domestic employment, Kao said
Given the U.S. imposed sweeping 25 percent tariffs on all steel and aluminum as well as cars and car parts imported into the country, if Taiwan’s hand tool and plumbing hardware products are subject to the 32 percent tariff, this could hurt Taiwan’s small and medium companies in the industries, Kao indicated.
On the impact assessment of U.S. tariff policy on Taiwan’s overall economy, Kao cited the Directorate-General of Budget, Accounting and Statistics (DGBAS) forecast that the U.S. tariffs are expected to reduce Taiwan’s gross domestic product (GDP) growth by 0.5-1.5 percentage points.
In the latest round of tariffs announced by U.S. President Donald Trump on April 2, exports from Taiwan were to face a 32 percent import duty.
Trump announced a 90-day pause on the new measures last week, with a 10 percent duty to be applied instead to most countries except China.
