Taipei, April 5 (CNA) Taiwanese textile and furniture companies that have large production bases in Southeast Asia have expressed concerns about their ability to navigate the risks caused by the latest round tariffs imposed by the United States on countries worldwide.
Eclat Textile Co., a Taiwanese supplier to major international sportwear brands like Nike, Lululemon and Under Armour, said Thursday that 60 percent of its garment sales come from the U.S. market.
In an interview with CNA, the textile supplier said 60 percent of its total production is in Vietnam, 27 percent in Indonesia, and 10 percent in Cambodia, which means it is now facing increasing risks.
U.S. President Donald Trump on Wednesday announced what he called reciprocal tariffs on countries worldwide, ranging from 10 percent to more than 40 percent, with effect from April 9.
On Trump’s list, a 32 percent tariff was imposed on Taiwan, 34 percent on China, 49 percent on Cambodia, 46 percent on Vietnam, 36 percent on Thailand, and 32 percent on Indonesia.
According to Eclat, even with its diversified production bases, it cannot escape the fallout of the new tariffs.
Eclat said it will work closely with its suppliers to improve production efficiency, so as to cap costs, and will set up strategic partnerships with its clients as means of weathering the turbulence caused by Trump’s policies.
While some Taiwanese companies are considering investing in the U.S. market to avoid the tariffs, Eclat said it will be difficult for the textile industry to expand its production to the U.S. in light of the high labor costs and shortage of suppliers in the textile industry.
Meanwhile, Makalot Industrial Co., which manufactures garments such as pants, underwear and sleepwear, also said it is worried about the financial impact of Trump’s tariffs on Southeast Asian countries.
The U.S. accounts for more than 70 percent of Makalot’s total sales revenue, while 41 percent of its total production is based in Indonesia, 37 percent in Vietnam, and 14 percent in Cambodia, the company told CNA.
Makalot said it will hold international meetings next week and engage in discussions with its clients to find ways to share the expected financial burden caused by Trump’s latest tariffs.
Meanwhile, a leading Taiwanese manufacturer of footwear Pou Chen Corp. also told CNA that it will hold discussions with its clients to figure out the best response to the tariffs.
Pou Chen, which is a contract supplier to major international brands such as Nike, Adidas, and New Balance, has 53 percent of its production in Indonesia and more than 30 percent in Vietnam, according to market estimates.
Apart from textile companies, other Taiwanese firms are also bracing for the impact of the U.S. tariffs, including furniture manufacturers Shane Global Holding Inc. and Nien Made Enterprise Co.
Shane Global has 64 percent of its production in China and Cambodia, while Nien Made has a total of 80 percent in those two countries, market estimates show.
Several Taiwanese companies in the tech sector also have large production lines in Southeast Asian countries.
On Friday, Taiwan’s top economic planning body the National Development Council (NDC) said it would provide assistance to Taiwanese manufacturers in Southeast Asia that wish to return to Taiwan.
NDC head Liu Chin-ching (劉鏡清) told reporters that the government will optimize Taiwan’s investment environment to help Taiwanese firms improve their global competitive edge.
