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Tariff Policies Reshape Hand Tool Supply Chains, Opening New Opportunities for Taiwanese Manufacturers
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2025-08-15
In 2025, ongoing U.S. tariff policies and appreciation of the Taiwan Dollar are challenging Taiwanese hand tool makers, but also creating new opportunities from redirected orders. Major Taiwanese companies like Basso Industry, Chiu Ting Machinery, and KHgears International are witnessing order shifts due to rising tariffs on China and increased market uncertainty.
The hand tool supply chain is mainly centered in China and Taiwan, with the U.S. as the primary sales target market. The recent tariff tensions have prompted American customers to reconsider their heavy reliance on Chinese suppliers. As a result, some new project models and replacement parts are being relocated to Taiwan and Vietnam.
Basso Industry sees no clear order increases yet but expects contributions from new electric tool products by year-end. KHgears International's Vietnam plant benefits from supply chain restructuring, gaining orders from Stanley Black & Decker. Chiu Ting Machinery notes that moving production from China back to Taiwan could present growth opportunities if tariffs on Taiwan remain reasonable.
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