U.S. Tariff Measures Challenge Taiwan’s Machine Tool and Traditional Machinery Industry
According to a recent report by Taiwan News, Taiwan’s machine tool and traditional machinery sectors are facing mounting challenges due to the United States’ imposition of tariffs as high as 20%. This significant rate may erode Taiwan’s competitiveness in a price-sensitive market, especially since similar products from Japan and South Korea are subject to tariffs around 15%.
(taiwannews.com.tw)
Key strategies highlighted in the report include:
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Strengthening negotiations with the U.S. to seek tariff adjustments;
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Diversifying export markets to reduce reliance on the U.S.;
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Applying the “Taiwan Plus One” strategy by establishing overseas assembly or processing bases;
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Accelerating industrial upgrades through technologies such as AI and digital twin solutions to enhance value-added and efficiency.
Our Company's Response:
As part of Taiwan's machine tool and related industries, we recognize that this development underscores the need for proactive measures:
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Customer Communication
Clearly explain cost structure changes, including tariff impacts, to U.S. clients and explore cost-sharing or order adjustment solutions. -
Market Diversification
Actively expand into Southeast Asia, India, and Europe to mitigate reliance on a single market. -
Technology Upgrades
Accelerate the adoption of smart manufacturing, automation, and quality assurance technologies to reduce costs and strengthen competitiveness. -
Overseas Production Assessment
Evaluate the feasibility of establishing production or assembly operations abroad in regions with lower tariff exposure and optimized logistics.
Conclusion:
The U.S. tariff increase presents both challenges and opportunities. It emphasizes the importance of flexibility in global supply chain management and market strategy. Our company will continue to closely monitor international developments and take concrete steps to safeguard our competitiveness and ensure customer confidence.