Although Mexico's textile exports have reportedly won a greater share of the US market and may threaten Asian textile firms, local manufacturers said their exports have not been affected.
However, that may change in the near future, industrial sources said.
According to an Economic Daily News report, Mexico's share of the US textile market increased 16.3 percent between January and July. Meanwhile, the share of the US market held by Taiwan, Hong Kong, South Korea and China fell below 20 percent.
In the first seven months of this year, exports from these countries amounted to 19 percent of the total US market.
According to Michael Chang (張滄漢 ), deputy secretary general of the Taiwan Textile Federation (台灣紡坡晰|), textile exports to the US have not been adversely affected.
"We have not suffered from significant decreases of textile exports to the US," Chang said.
But competition from NAFTA member countries, in the long term, may pose a threat to Asian exporters, including Taiwan, Chang said.
NAFTA is the North American Free Trade Agreement, of which the US and Mexico are members.
According to local textile manufacturers, even if exports to the US falls as a result of increased competition from Mexico, the impact on Taiwan will not be immediately significant, as Taiwan shipped 17 percent of its total textile exports to the US this year and 18 percent in 1998.
Currently, Taiwan textile exports face US quota and tariff restrictions. According to Chang, those could be lifted with Taiwan's entry into the World Trade Organization.
However, under the present tariff system, Taiwan will continue to face stiff competition with Mexico, which is not hindered by trade barriers as a NAFTA member.
This year, 30 percent of Taiwan's textile and apparel exports to the US were fabrics and yarn, with the 70 percent remainder made up by garments.
The rapid growth of textile imports into the US has been attributed to increased imports from neighboring NAFTA members, especially Mexico, the textile federation said. In addition, Mexico has been the largest textile supplier to the US in the past three years.
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Taiwan will prioritize the development of silicon photonics by taking advantage of its strength in the semiconductor industry to build another shield to protect the local economy, National Development Council (NDC) Minister Paul Liu (劉鏡清) said yesterday. Speaking at a meeting of the legislature’s Economics Committee, Liu said Taiwan already has the artificial intelligence (AI) industry as a shield, after the semiconductor industry, to safeguard the country, and is looking at new unique fields to build more economic shields. While Taiwan will further strengthen its existing shields, over the longer term, the country is determined to focus on such potential segments as
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
RSS