Taiwan counts cost of tariffs

Taiwanese exporters are crunching numbers and talking to American clients as they scramble to figure out how to respond to US President Donald Trump's tariff blitz that threatens to disrupt their businesses.

- JOY CHIANG ALLISON JACKSON

While the final impact is not yet known, factory owners on the island are clear-eyed on one thing: moving operations to the United States is easier said than done.

"Taiwan's structure is what makes this industry viable," the owner of a machine tool exporter told AFP on the condition of anonymity, highlighting the island's network of small and medium-sized factories supplying his company.

"There are so many components, like gears, belts and others — the US doesn't have these industries. Setting up a factory in the US would not be worth it," he said, describing Trump's policy as "ridiculous".

From yesterday, Taiwanese products shipped to the United States, including electronics, machinery, components, auto parts and bicycles, were hit with a hefty 32% levy.

It is part of Trump's far-reaching global tariffs that have roiled world markets and sparked recession fears, as US seeks to reduce the US trade deficit and push companies to shift manufacturing to American soil.

Many in Taiwan were stunned by the size of the tariffs after chipmaking colossus Taiwan Semiconductor Manufacturing Co's plan to invest an additional $100 billion in the United States raised hopes the island would be spared.