US Customs and Border Protection (CBP) on Wednesday last week issued an order barring bicycles, bicycle parts and accessories made by Giant Manufacturing Co in Taiwan, citing “evidence of forced labor.”
According to Giant spokesman Ken Li (李書耕), the CPB never visited the company’s factories to conduct on-site investigations, nor to interview or investigate specific employees — thus, the company was shocked upon receiving the sudden Withhold Release Order (WRO).
Li also said that the CBP has the authority to issue a WRO based on a variety of sources — including unverified online rumors. As such, Giant’s only option is to face the situation head-on and use its legal resources to form an emergency response team. Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said that the ministry would work with the Ministry of Labor to conduct a comprehensive review of all industries to ensure employee safety.
This is an issue that the government must take seriously. After all, one of the main goals of US President Donald Trump’s tariff war is to promote “Made in America” manufacturing. Whether this move targeting Taiwan’s premium Giant brand would trigger a chain reaction is something that warrants close attention.
Taiwan Semiconductor Manufacturing Co (TSMC) increased its investment in the US this year to US$165 billion (NT$5.42 billion). US Secretary of the Treasury Scott Bessent recently said that 99 percent of high-performance chips are produced in Taiwan, calling it the “single greatest point of failure for the world economy,” as this excessive concentration poses strategic and economic risks.
Bessent said that, while Taiwan has a wonderful industrial ecosystem, the US hopes to shift 30, 40 or even 50 percent of its demand to the US or its allies.
“We are working on that every day,” he said.
It is clear that the CBP’s ban on Giant’s bicycles, bicycle parts and accessories is closely related to the broader US push for at least 50 percent of TSMC’s advanced chip production to take place within the US, which implicates a wide range of Taiwan’s export industries. It is common for Taiwanese to jokingly describe working in certain industries as “selling one’s liver” due to the difficulty of the work — however, if the CBP were to use these jokes as justification for imposing sanctions, Taiwan’s “sacred mountain” — TSMC — could be shaken.
Taiwan’s exports to the US are subject to a 20 percent tariff, which is higher than that of Japan and South Korea, the country’s main competitors. The government must intervene and engage in dialogue. Taiwan has long been a geopolitical and trade partner of the US, and could not withstand the impact of these sanctions.
Fang Fu-chuan is an international trader.
Translated by Kyra Gustavsen
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