Some Taiwanese factories in Southeast Asia are grappling with U.S. tariff rates even higher than the 32% imposed on Taiwan. TaiwanPlus speaks to Taiwanese businessman Tim Chuang in Bangkok.
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00:00Taiwanese factories set up overseas are still hard at work, but business is far from usual.
00:08Many now struggling to cope with U.S. President Donald Trump's new global tariffs.
00:13Some are facing even higher rates than the one imposed on Taiwan,
00:18like firms in Vietnam, now slapped with a 46 percent levy.
00:30Since the 1990s, Taiwanese firms have increased investments to Southeast Asia
00:40as part of a national go-south policy under former President Li Denghui.
00:46The idea was to make sure Taiwan's export-heavy economy does not overly rely on China.
00:54Current President Lai Qingde has his own version of the initiative,
00:58called New Southbound Policy Plus,
01:01continuing to encourage Taiwanese firms to work with the region.
01:06But now Trump has imposed new tariffs on all 10 ASEAN countries,
01:11with Cambodia and Laos facing some of the highest rates.
01:17Thailand, which is looking at a 36 percent tariff,
01:20is the production base for several Taiwanese firms.
01:24The United States may not be the main market for some of them,
01:27but they are still bracing for collateral damage.
01:30Another factor to account for is uncertainty,
01:51as governments scramble to negotiate with Washington to lower the tariffs.
01:56The White House, saying almost 70 countries, have reached out to Trump.
02:01Bring us your best offers, and he will listen.
02:04Businesses are watching any potential talks closely,
02:07hoping for the best, but also preparing for the worst.
02:11COVID is still a serious situation.
02:14We can all survive.
02:15With Trump's tariffs taking effect,
02:19these overseas Taiwanese firms have little choice but to keep its non-U.S. customers close
02:25and adapt to a more closed-off American economy.
02:28Lee Sin Pan and Joyston, for Taiwan Plus.