Taiwan Dollar Surge Hits Export Sector Hard, SMEs Face Double Blow to Profits

The Taiwanese dollar has seen a significant surge recently, soaring 9.53 cents in a single day on May 2, shocking the market. However, many small and medium-sized enterprises (SMEs) that are export-oriented are facing severe challenges amidst uncertain U.S. tariff policies.
Reports indicate that several plumbing suppliers in Changhua's Lugang are urging the government to take notice, as their profit margins are already thin. The pressure from the appreciating Taiwan dollar, coupled with unclear tariff prospects, is making business increasingly difficult. Wang Hsiang-hung, the general manager of a plumbing company, expressed frustration that their products are priced in USD, and when the Taiwan dollar appreciates, their profits can diminish to mere amounts after costs are factored in.
Some exporters have pointed out that shipping costs for containers can be as high as $60,000 to $70,000. Without seizing the right timing for currency exchanges, substantial losses can ensue. The export-driven structure of Taiwan's industries is highly sensitive to exchange rate fluctuations, with many calling for government intervention to stabilize expectations and prevent further losses.