TAIPEI (TVBS News) — Southern Taiwan's industrial hub is mobilizing resources to shield its manufacturing sector from escalating trade tensions. The Kaohsiung City Government has initiated a sweeping economic response strategy to mitigate the effects of Washington's reciprocal tariff policy, actively consulting with major industrial associations representing the city's manufacturing base. In its latest assessment released Tuesday (April 8), the Economic Development Bureau (高雄市政府經濟發展局), Kaohsiung's commerce regulatory authority, confirmed that the region's crucial fastener industry continues to experience significant disruption, even after absorbing the initial 25% tariff increase implemented on March 12.
Municipal officials have formally recommended that the Ministry of Economic Affairs (MOEA, 經濟部) officially designate the fastener manufacturing sector as an "impacted industry" to qualify for additional government assistance programs. Offering a nuanced perspective on the situation, Tsai Yung-yu (蔡永裕), who chairs the Taiwan Industrial Fasteners Institute (台灣螺絲工業同業公會), noted that the universal application of the 25% tariff to all countries exporting screws to American markets has actually helped level the competitive landscape, partially alleviating Taiwan's previously disadvantaged market position relative to other exporting nations.
The ripple effects across Taiwan's integrated supply chains have prompted industry leaders to advocate for more comprehensive relief measures. Cheng Tsai-hsing (鄭再興), who leads the Taiwan Technology Industrial Park Electrical And Electronic Manufacturer's Association (台灣科技產業園區電機電子工業同業公會), voiced significant apprehension regarding diminishing market demand and recommended that government subsidy programs be expanded to include upstream component manufacturers and midstream processing companies. Adding to these concerns, Wayne Lee (李威穎), secretary-general of the Kaohsiung Chamber of Industry (高雄市工業會), underscored the pressing requirement for immediate financial assistance to address mounting challenges specifically affecting the region's cornerstone metal processing, steel manufacturing, and electronics production sectors.
Addressing these industry concerns, Liao Tai-hsiang (廖泰翔), director general of the Economic Development Bureau, referenced the substantial NT$88 billion (US$2.67 billion) assistance package unveiled on April 4 by the Executive Yuan (行政院), Taiwan's cabinet. This national initiative encompasses both direct financial aid and administrative cost reduction measures designed to ease regulatory burdens. At the local level, Kaohsiung authorities have established a specialized "Reciprocal Tariff Economic Response Task Force" dedicated to minimizing negative tariff impacts through a three-pronged approach: developing collaborative industry platforms for knowledge sharing, forming specialized guidance teams to provide technical assistance, and creating dedicated labor support groups to address workforce challenges resulting from market disruptions.
