TAIPEI (Taiwan News) — The Taiwan Textile Federation held a sales promotion event on Wednesday at the Taipei Economic and Cultural Office in New York.
The event showcased new textile technologies and highlighted Taiwan’s strengths amidst global supply chain disruptions brought about by increased US tariffs. Six Taiwanese textile companies participated in the event, which aimed to strengthen partnerships with North American brands, per CNA.
Colorful Textile & Apparels General Manager Liao Ta-yu (廖大裕) said the business outlook for the textile industry next year remains “quite challenging.” He added that Taiwan’s advantages in textile technology will continue to erode as international competitors improve production capabilities.
Liao said rising fuel and electricity costs are further straining manufacturers, who are now focusing on developing functional and specialized products to maintain competitiveness. He described the North American market as “stagnant,” with weak downstream demand intensifying price competition.
“Tariffs pose a greater risk to manufacturers producing finished goods,” he said, noting that direct exports to the US are subject to higher duties, while exports through third countries may not face the same burden.
TTF Coordinator Darren Kao (高德潤) said orders have been delayed amidst economic uncertainty in the US. He explained that textile exports to third countries such as Indonesia and Vietnam may still incur higher tariffs.
Kao said higher US tariffs have hit accessories such as gloves, hats, and socks particularly hard. Around half of Taiwanese manufacturers market directly to US brands, potentially facing tariffs exceeding 30%, nearly double the 15% rate applied to similar products from Japan and South Korea.
“The tariff situation has caused both manufacturers and brand owners to adopt a ‘wait-and-see’ approach,” Kao said. Some firms are asking downstream partners to absorb part of the tariff costs, which has further disrupted operations.
Industry representatives said the textile sector must accelerate innovation by developing new materials, reducing production costs, and cultivating emerging brands to offset the impact of tariffs and safeguard Taiwan’s role in global supply chains.
