With few export trade links to the Middle East, the US-led attack on Iraq is not expected to have a big impact on Taiwan's foreign trade this year as long as the conflict lasts no longer than six weeks, the Board of Foreign Trade said yesterday.
Exports to the Middle East, which comprise 16 countries, including Saudi Arabia, Kuwait and UAE, totaled US$2.38 billion last year, up 7.19 percent from a year earlier, accounting for 1.8 percent of Taiwan's total exports, the board said in a report.
Imports from the Middle East, mainly crude oil from Saudi Arabia, amounted to US$7.25 billion last year, up 9.83 percent and accounting for 6.4 percent of total imports, it said.
The board forecast that the impact in trade would be limited because OPEC members such as Saudi Arabia have committed to making up for any shortage of oil supplies caused by events in Iraq.
But if the war with Iraq drags on, rising oil prices are likely to adversely affects economies worldwide, including Taiwan, the board said.
Wei Duan (
"But if the war ends quickly, Taiwanese manufacturers may benefit from a global economic recovery," Wei said, citing local exporters of medical goods, plastics, chemicals and petrochemical products as possible winners.
The war may also trigger higher prices for petrochemical products. A 5-percent hike in oil prices could lower Taiwan's exports by as much as NT$4.9 billion and cause a reduction of NT$6.5 billion in GDP, the Taiwan Institute of Economic Research (
The Cabinet-level Council for Economic Planning and Development forecast that Taiwan's GDP this year may fall by 0.07 percentage points to 3.45 percent if the war lasts between three and six months. The council earlier forecast 3.52 percent growth for this year.
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
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
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
TARIFF CONCERNS: The chipmaker cited global uncertainty from US tariffs and a weakening economic outlook, but said its Singapore expansion remains on track Vanguard International Semiconductor Corp (世界先進), a foundry service provider specializing in producing power management and display driver chips, yesterday withdrew its full-year revenue projection of moderate growth for this year, as escalating US tariff tensions raised uncertainty and concern about a potential economic recession. The Hsinchu-based chipmaker in February said revenues this year would grow mildly from last year based on improving supply chain inventory levels and market demand. At the time, it also anticipated gradual quarter revenue growth. However, the US’ sweeping tariff policy has upended the industry’s supply chains and weakened economic prospects for the world economy, it said. “Now
RSS