On the 26th, U.S. President Trump announced an additional 25% tariff on imported automobiles, which is expected to be put on the road on April 2. This includes complete vehicles and automobile parts. According to the Ministry of Economic Affairs, my country's exports of complete vehicles to the United States last year were US$98 million (approximately NT$3.2 billion). However, the United States is Taiwan's largest exporter of auto parts, accounting for more than 50% of our exports. Last year, China's exports to the United States were US$3.1 billion (approximately NT$102.6 billion), mainly for the US after-sales service market, such as bumpers, car lights, etc.
According to a list released by the White House, the auto tariffs target cars, SUVs, crossover SUVs, minivans, vans, and light trucks imported into the United States; they also cover key auto parts, including engines, transmissions, electronic parts, etc.
Trump said he was very excited about the return of the auto industry to manufacturing in the United States, and also said that the United States could receive up to $1 trillion in tariff revenue within two years.
According to statistics from the Ministry of Economic Affairs, my country's export value of complete vehicles to the United States in 2013 was US$98 million, mainly ATVs, not ordinary cars. Based on this ratio, the impact of the U.S. 25% tariff on Taiwan's vehicle industry will be limited.
However, automotive components are a completely different story. The United States is Taiwan's largest exporter of auto parts, accounting for more than 50% of our exports. According to statistics from the Ministry of Economic Affairs, the value of vehicle parts exported to the United States in 2024 will be US$3.1 billion, mainly for the US after-sales service market, such as bumpers, lights, etc.
In response to the above impact, the Ministry of Economic Affairs stated that regarding the issue of vehicle tariffs imposed by the United States, the Ministry of Economic Affairs has invited domestic vehicle manufacturers for multiple discussions in February this year, and will also invite manufacturers to discuss response measures in due course. Since the details of the U.S. tariffs have not yet been announced, the Ministry of Economic Affairs will continue to pay attention.
In addition, many American car manufacturers in my country are authorized to sell complete vehicles in Taiwan, such as Ford Liuhe. According to the requirements of the Trump administration, American cars produced overseas will also be subject to tariffs.
The Ministry of Economic Affairs stated that Taiwan Ford currently produces and sells complete vehicles in Taiwan in order to obtain authorization from Ford of the United States. It does not have any OEM vehicles exported to the United States. The impact on Taiwan Ford is not significant.
