TAIPEI (Taiwan News) — Taiwan steelmakers will likely experience a level playing field as US President Donald Trump put a 25% tariff on all steel imports with no exceptions and exemptions. 

Countries such as Canada, Mexico, Japan, South Korea, and the EU, are scheduled to lose tariff-free status for steel beginning in March. Taiwan steelmakers, on the other hand, never enjoyed such an exemption and have been subject to 25% steel tariffs since 2010.

Taiwan Steel & Iron Industries Association Chair Hwang Chien-chih (黃建智) said Taiwan steelmakers may experience more sales to the US, with regional competitors like Japan and South Korea likely suffering due to the loss of tariff exemptions. Hwang added US steel prices will most likely rise, per CNA.

"After U.S. President Trump took office in January this year, US hot-rolled steel prices rose from US$767 (NT$25,179) per metric ton to about US$837 now, and it may reach US$1,000 in the future,“ said Hwang.

Hwang said countries that once enjoyed tariff-free privileges may adjust their strategy, with more steel flowing back to Asia or Europe at lower prices. This could mean Taiwan will face more competition in regional markets, as the situation requires observation.

However, Hwang added there is still one month before the new steel tariffs go into effect, and many variables are still at play. For example, the US may still negotiate with such countries for other concessions in exchange for the reinstatement of tariff-free status.

Meanwhile, an executive from Yieh Phui Enterprise Co., another major steel supplier in Taiwan, said the new steel tariffs are targeting previously exempt countries, especially Canada and Mexico, countries with the largest trade surplus with the US. He added that 67% of Yieh Phui’s exports go to the US.

Chung Hung Steel said its sales to the US are mainly steel pipes, with other indirect sales of rolled steel coil transformed into different items for export such as painted base material. It said the new tariffs would end unfair trade and help Taiwan's steel products in the US market.