A move by US President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, the Taiwan Steel & Iron Industries Association said yesterday.
Speaking with CNA, association chairman Hwang Chien-chih (黃建智) said such an equal footing is expected to boost Taiwan’s competitive edge against other countries in the US market, describing the tariffs as "positive" for Taiwanese steel exporters.
On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective next month.
Photo courtesy of China Steel Corp
According to foreign media reports, Taiwan ranked the eighth largest steel exporter to the US market last year, selling 1.01 million tonnes of steel products, behind Canada (6.56 million tonnes), Brazil (4.50 million tonnes) and Mexico (3.52 million tonnes).
Hwang, also chairman of China Steel Corp (中鋼), the largest steel maker in Taiwan, said the new executive orders, which will take away an exemption status from Canada, Mexico, Japan and the European Union, are expected to help Taiwan sell more steel products to the US.
The tariffs are also expected to push up steel prices in the US market, benefiting Taiwanese exporters, he said.
Prices of hot rolled steel products have risen to US$837 per tonne from US$767 since Trump took office on Jan. 20, and the prices could hit US$1,000 per tonne shortly due to the tariffs, he added.
Meanwhile, an executive from Yieh Phui Enterprise Co (燁輝), another major steel supplier in Taiwan, said the 25 percent tariffs mainly targeted the leading exporters such as Canada and Mexico, which enjoyed a large trade surplus with the US.
Once the new tariffs become effective, the executive said steel imports to the US market are expected to move lower, which could push up product prices there and allow Yieh Phui to improve its profitability. Currently, the US market accounts for half of the company’s total exports, he said
Chung Hung Steel Corp (中鴻), another Taiwanese steel maker, said the new tariffs will change the current unfair competition in the US market as many countries enjoy an exemption, a positive trend to Taiwan.
However, Hwang said Trump’s tariffs on steel could cut both ways for Taiwanese exporters.
He said these countries which will be taking away tariff exemption are likely to ship their products to other markets such as Asia or Europe at lower prices to make up the losses in sales in the US, which could place Taiwan under new competition.
He added as the new tariffs will not go into effect until March, Trump could change his mind before that, urging Taiwanese exporters to keep a close eye on the situation.
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with about 25,000 people living and working there, it accounts for about two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-center and cold-chain transport firms in the region. However, to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have demanded land worth millions of dollars in exchange
An Indonesian animated movie is smashing regional box office records and could be set for wider success as it prepares to open beyond the Southeast Asian archipelago’s silver screens. Jumbo — a film based on the adventures of main character, Don, a large orphaned Indonesian boy facing bullying at school — last month became the highest-grossing Southeast Asian animated film, raking in more than US$8 million. Released at the end of March to coincide with the Eid holidays after the Islamic fasting month of Ramadan, the movie has hit 8 million ticket sales, the third-highest in Indonesian cinema history, Film
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
‘IMMENSE SWAY’: The top 50 companies, based on market cap, shape everything from technology to consumer trends, advisory firm Visual Capitalist said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was ranked the 10th-most valuable company globally this year, market information advisory firm Visual Capitalist said. TSMC sat on a market cap of about US$915 billion as of Monday last week, making it the 10th-most valuable company in the world and No. 1 in Asia, the publisher said in its “50 Most Valuable Companies in the World” list. Visual Capitalist described TSMC as the world’s largest dedicated semiconductor foundry operator that rolls out chips for major tech names such as US consumer electronics brand Apple Inc, and artificial intelligence (AI) chip designers Nvidia Corp and Advanced
RSS