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Canada & Mexico Tariff Barriers Rise, Taiwan Fasteners Exports May Face NTD 10 Billion Loss
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2026-02-05
Mexico announced import tariff hikes of 5-50% on non-FTA countries starting 2026, while Canada imposed an additional 25% tariff on steel derivatives. Industry insiders worry that Taiwan's over NTD 10 billion annual North American export momentum is at risk, potentially leading to a complete loss of price competitiveness.
Mexico and Canada account for 2.44% and 3.96% of Taiwan's exports respectively, totaling 6.4%, serving as key gateways into US automotive, aerospace, and construction supply chains. Mexico's move aims to block Chinese transshipment and origin laundering, but Taiwanese firms are caught in the crossfire. Canada's 25% tariff is even more devastating, effectively wiping out the thin margins in the mature fasteners sector and creating over NTD 1.3 billion in tax burdens, severely eroding North American market share.
Experts urge Taiwanese manufacturers to accelerate transformation from traditional construction fasteners to high-value aerospace, medical, and EV fasteners to offset tariff impacts through premium pricing. Major firms are evaluating factory setups in Mexico to secure local production and certificates of origin.
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