Taifeng Tire, a time-honored tire manufacturer that has been in Taiwan for 70 years, announced that it will sell all the land, factories and equipment of the Guanyin factory. The permanent closure of the factory also sent a shock bomb to the market. Taifeng emphasized that orders will be transferred to Southeast Asia for OEM production. Financial expert Wang Jiemin believes that the tariffs are indeed the last straw for Taifeng.

Tai Feng Tire, a 70-year-old brand in Taiwan, company executives attended the stock exchange press conference to explain that they were defeated by the previous high anti-dumping tariffs imposed by the United States, and the recent U.S. President Trump’s anti-dumping tariffs on automobiles

With the 25% tariff imposed on spare parts, the Guanyin Factory has officially entered history. Company executives said that today we will use this opportunity to explain the case of the Guanyin Factory’s permanent shutdown and asset activation.

Taifeng Tire said that in the two years since the US anti-dumping was launched, it was very uncertain whether the US anti-dumping duties could be reduced. Currently, the US Trump administration has implemented reciprocal tariffs on the world and a 25% tariff on auto parts including tires. Under the impact of multiple unfavorable factors in the industry, the cost of restarting the Guanyin factory must be higher than the efficiency. The purpose of reluctantly closing the factory is to increase cash flow. Taifeng emphasized that after the closure of the domestic Zhongli factory and Guanyin factory, it will still operate its business, and Taiwanese orders will be produced by Southeast Asian OEMs.

Experts believe that Trump’s lesson for the auto parts industry in non-U.S. countries is 25%, and the impact on operations cannot be underestimated. In addition, the original 32% reciprocal tariff is now in the cooling-off period. Although the tariff is only 10%, the industry still has a glimmer of hope. All we can do is make preparations to minimize the impact.