U.S. Tariffs Push Taiwanese Textile Exporters to Strengthen Resilience

TaiwanPlus News

The impact of U.S. tariff policies is already being felt by some Taiwanese exporters. But it’s also prompting many companies to become more resilient. TaiwanPlus takes a look at how Taiwan's textile industry is navigating global trade headwinds.

Transcript

00:00Like this, all of these products, they are made of products.

00:06Entrepreneur Sam Hone is in a tough spot.

00:09His firm, HFI, supplies eco-friendly fabrics to major international brands,

00:13like the North Face and Lululemon.

00:15After U.S. President Donald Trump threatened widespread tariffs in April,

00:19including 32 percent on Taiwanese goods,

00:22Hone has had to think of ways to minimize the impact.

00:25And although those tariffs are not paused, for now,

00:28he's already seen some difficulties with customers.

00:31It's a tremendous impact right now, what's happening right now, yes.

00:36They can't just absorb all the import tariff,

00:41and they're going to come ask for a little bit help for a better price.

00:47When they are big and they've got a bargain power,

00:49you take it or leave it, I mean, it's not easy.

00:53HFI's customer base is overwhelmingly American,

00:56making the uncertainty in global trade an especially tough problem.

01:00So Hone has now started branching out.

01:02I try to not diversify my product, also my market,

01:06and hopefully try to penetrate every market I can.

01:09Hone's company isn't alone.

01:11Taiwan's textile industry depends heavily on exports

01:15and mostly operates business to business.

01:17And it has strong ties with international customers,

01:20especially in the U.S.

01:21and with factories in Southeast Asia,

01:23where some countries have also been hit with high tariffs.

01:26That means rising costs are forcing brands

01:29to pay closer attention to managing expenses.

01:32They are clearly visible.

01:35They are clearly visible.

01:36The view of the view is that

01:37the new supply supply supply supply supply supply

01:40has been improved.

01:42Industry insiders say the tariffs have also pushed

01:46Taiwan's textile firms to improve across multiple fronts.

01:49The textile sector is just one of several in Taiwan

02:01looking to offset the impact of U.S. tariffs.

02:04The U.S. is Taiwan's second largest export market,

02:20surpassing China to become number one in February and June this year,

02:24meaning Taiwan relies heavily on the U.S. market.

02:27After tariffs were first announced in the spring,

02:30many Taiwanese companies were flooded with orders from the U.S.

02:33with customers hoping to get ahead of the levies.

02:36But economists now worry

02:38this could spill trouble later on in the year.

02:41In the current period,

02:42it is very difficult to find a替代 market.

02:44But its challenge is that

02:47the investment in the U.S. market is very high,

02:50and it is higher than these new markets.

02:53That is why companies can directly invest in the U.S.

02:57If it is not a standard market,

02:59it is not a chance to get the opportunity.

03:01This is what companies need to consider.

03:04Economists say Taiwan needs to be more proactive

03:07navigating these uncertainties

03:09by strengthening its position in supply chains.

03:12Taiwan is still in trade talks with the U.S.,

03:27hoping to reach a deal that will shield it from the worst of the tariffs.

03:32But in the meantime,

03:33it is companies like Hone's HFI

03:35that are left with the fallout of U.S. trade policy,

03:38and who must now take steps to be resilient for the next big shock.

03:42Alex Chen and Ai Chi from Taiwan Plus.

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