TAIPEI (Taiwan News) — Bicycle manufacturer Giant Group will not establish a US factory due to high costs there and its strong Taiwanese supply chain, its Chair Young Liu (劉湧昌) said on Wednesday.

Liu spoke about the company’s outlook during a press conference at the Taipei Cycle show, per CNA. Liu expressed confidence in the company's future growth, but said some in the industry appear to suffer from “Trump Depression.”

Liu said Giant would not consider establishing a factory in the US and would focus on its factories in Vietnam and Hungary instead. He said US tariffs on Vietnam may be lower, so exporting to the US from there remains feasible.

Giant Group CEO Phoebe Liu (劉素娟) said the bicycle industry benefits from strong industrial clusters, which Taiwan has. She said it would be impossible to quickly move the Taiwanese supply chain.

Chair Liu said the company expects sales revenue to exceed NT$100 billion (US$3 billion) within three years. However, he said the Russia-Ukraine war’s effect on inflation and European demand will require further observation.

Liu said demand in China was strong last year but sales have slightly declined this year. He said China sales were still strong, and the overall market was growing.

Giant’s orders from European and US OEM customers have increased, Liu said. He also expressed optimism about the Japanese bike market.

Giant makes the bicycles for YouBike, Taiwan's public bicycle-sharing system. Liu said Giant would consider if this could be accounted for when calculating the company's carbon emissions before carbon taxes are rolled out next year.