The economics ministry said Wednesday that the latest round of US tariffs on Chinese goods would have a limited impact on Taiwan.
The United States has announced a 10% tariff on an additional US$200 billion of Chinese imports. That follows an announcement last week of a 25% tariff on US$34 billion of Chinese goods. Beijing has threatened retaliation in kind, raising the prospect of an all-out trade war between the world’s two largest economies.
The imports covered by the latest tariff announcement include food products, tobacco, chemicals, textiles, bicycles and components. Deputy economics minister Wang Mei-hua said the impact on Taiwanese manufacturers is likely to be limited. That’s because notebooks and phones are not included on the latest list – these are the major products produced by Taiwanese manufacturers in China for export to the US.
Wang said Taiwanese-made textiles produced in China are mainly for the domestic Chinese market or for export to Southeast Asian markets. As for bicycles, Taiwan manufactures its own high-end bikes and exports directly to Europe and the US. The deputy minister said the preliminary evaluation is that Taiwan will not be greatly affected by the latest move. But she said the ministry will pay close attention to follow-up developments and their potential effects.