TAIPEI (Taiwan News) — As Trump plans heavy tariffs on Canada and Mexico, Taiwanese auto parts manufacturers are taking multiple countermeasures.
After a one-month delay, Trump reiterated on Monday that 25% tariffs on Canada and Mexico would go forward, per CNBC. He also said that tariffs on automobiles could be implemented as early as April 2.
Among the Taiwanese automotive parts manufacturers making adjustments is Global PMX, which will adopt the Free On Board (FOB) shipping method in the short term, per CNA. Under FOB, the buyer shoulders the burden for all import duties, taxes, and customs clearance procedures at the destination port.
Global PMX said the switch to FOB will not have a significant impact on its operations. The company said it will monitor order shipment schedules and flexibly adjust production and shipping configurations.
Transmission system manufacturer Tsang Yow Industrial told the news agency that it maintains close contact with established carmakers, Tier 1 auto parts suppliers, aftermarket (AM) customers, and original equipment parts (OES) clients. In addition to consolidating its existing market base for key auto parts, the company is adjusting its production configuration by using its factory in Chiayi and its new Southeast Asian production base.
To respond to market changes, Tsang Yow is accelerating the layout of its semiconductor business. Its Chiayi plant will gradually introduce four types of components for trial production by the end of 2024.
In addition, its new factory in Malaysia will break ground in Oct 2024 and is expected to start mass production of key components for semiconductor front-end processing equipment in the second quarter of 2026. Tsang Yow is also initiating an investment plan for a plant in Thailand to deepen its presence in the Southeast Asian market.
Automotive interior parts manufacturer Hiroca Holdings, which has factories in China and Mexico, said that its Mexican plant produces localized goods based on customer demand, with most products shipped to local customers in Mexico. It said that in the short term, US tariff policies will not have an impact.
Regarding its China operations, Hiroca Holdings said that the proportion of products exported from China to the US has been gradually reduced since the onset of the US-China trade war. The impact of the new round of US tariffs on China is limited, it added.
LED automotive lighting module manufacturer Laster Tech told CNA that in response to the global trend of supply chain decentralization, it plans to collaborate with local Taiwanese manufacturers in Thailand and Mexico to adopt a manufacturing division of labor model to reduce risks while flexibly responding to market changes.
Laster Tech said it has reached an agreement with its customers that, should there be any tariff adjustments in the future, the customers will fully absorb the tariffs to ensure Laster Tech's gross margin.
