00:00Taiwan and the U.S. have finally signed a long-awaited trade deal.
00:03But one part of the deal raising the most concerns in Taiwan is cars.
00:08Taiwan has agreed to open its auto market to the U.S. as part of the final deal,
00:11lowering tariffs on U.S. car imports from 17.5 percent to zero.
00:17This could be a big blow to local auto manufacturers,
00:20who now face tough competition from imported U.S. models.
00:24Analysts are even warning of potential job losses.
00:26If U.S. made cars, you know, as per to Taiwan increase in the future,
00:32of course, let me call out the space of the domestic automobile industry in Taiwan.
00:38Okay, of course, let me jeopardize the, you know,
00:41the employment opportunities for the automobile employment.
00:46Some 414,000 vehicles were sold in Taiwan last year,
00:50with domestically made cars making up 51 percent and imported cars 49 percent.
00:56Domestic cars are priced lower than U.S. imported models,
00:59which gives them a competitive advantage.
01:02But now, an influx of lower-priced U.S.-made cars could affect domestic car purchases.
01:25Consumers may react positively to zero tariffs on U.S.-made cars,
01:29potentially leading to price reductions and boosting auto sales.
01:32Mercedes-Benz Taiwan says it plans to lower prices on five models,
01:37while Yulong Motor is evaluating the import of other U.S.-made vehicles.
01:58Taiwan's government has said it is setting aside 95 million U.S. dollars to help the auto industry
02:03weather the storm.
02:05But despite government support,
02:07it's clear the auto industry must make a strategic shift,
02:10as imported models push local producers to innovate and upgrade to stay competitive.
02:15Justin Wu and Lily Lamatina for Taiwan Plus.
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