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US-Taiwan Reciprocal Tariffs Cut to 15% Without Stacking, Welcomed by Taiwan’s Hand Tool and Plumbing Hardware Associations
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2026-02-05
The US-Taiwan reciprocal tariffs have been finalized at 15% without stacking, bringing Taiwan back to the same baseline as competitors like Japan and South Korea. This move has been praised by Chia-lieh Chang, chairman of Plumbing Association of Taiwan, as well as Jack Lai, former Chairman of Taiwan Hand Tool Manufacturers' Association and current Chairman Wu-Zhi Hsieh, who see it as a major boost for the industries. Chia-lieh Chang noted that returning tariffs to the same level puts Taiwan on an equal starting line, especially compared to China's 40% tariffs, widening Taiwan's competitive edge. He forecasts that, barring major exchange rate fluctuations, long-term orders will stabilize in Q2 2026, with benefits from redirecting orders from China becoming more evident. Wu-Zhi Hsieh stated that eliminating tariff instability and stacking is excellent news for the industry, with hopes for incoming orders. While Trump tariff rulings remain a variable, the current 15% level matches Japan and South Korea equally, marking a positive development. Though the steel industry remains under the US Section 232 at the tariff of 50%, Taiwan CSC remains optimistic. CSC pointed out that for products not covered by Section 232 or with low steel/aluminum content, the reciprocal tariffs dropping to 15% without stacking on MFN rates significantly lowers effective rates, aligning competition with Japan, South Korea, and the EU, paving the way for steady steel market growth.
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