Taipei / Report by Chou Kuan-yu, Lu Yi, and Huang Ao-tian
The screw and nut industry is a representative export-oriented sector in Taiwan. However, this year, it faces significant challenges due to the impact of U.S.-China tariff policies and the rapid appreciation of the New Taiwan Dollar. Industry players report that after the implementation of tariffs, orders have halved, and the export ratio has drastically decreased from 50% to 30%.

The factories are operating and producing customized products, but they are struggling with exports, especially since 44% of their products are exported to the U.S., making them highly sensitive to tariff policies. According to reporter Lu Yi, what used to be considered a transit point is now resembling a warehouse, as many goods are unable to ship.

Many clients are requesting shipment delays, which hampers the capital flow for many businesses. Today (5th), the strong appreciation of the New Taiwan Dollar alongside the depreciation of the U.S. dollar further complicates matters for exporters, leading to daily losses as high as NT$250,000.

Brand manager Lin Yi-chen mentioned that while the exchange rate was in the thirties during contract signing, it has dropped to the twenties by the time of shipment, making it difficult to estimate losses, particularly given the significant fluctuations in exchange rates recently. While exchange losses are typically a risk, this instance has hit too abruptly, leaving businesses feeling as if they've been stripped of their margins.

Lin Yi-chen further stated that after the tariffs were implemented, the new order amounts have significantly decreased, with losses felt to exceed 50%. This raises concern about how traditional small and medium-sized enterprises will survive this crisis, and the pressing need for potential government assistance in tax relief. The dual pressures of fluctuating tariffs and exchange rates as the international landscape becomes increasingly unstable have created a daunting challenge for the entire sector.