Taiwan Hand Tool Industry Poised to Gain from U.S.-China Trade Shift

Amid intensifying U.S.-China trade tensions, Taiwan's hand tool manufacturers are expected to benefit from a surge in redirected orders, thanks to a favorable tariff differential. While U.S. tariffs on Chinese hand tools can reach up to 64%, products from Taiwan face a comparatively modest 19% duty. This disparity presents a significant opportunity for Taiwanese exporters to expand their market share in the United States.

During a recent industry coordination meeting held on May 27 between China Steel Corporation (CSC) and the Taiwan Hand Tool Manufacturers' Association, both sides discussed strategies to strengthen Taiwan’s global competitiveness. Chen Po-Han, Director of Sales at CSC, pledged full support to downstream users in securing international orders and emphasized the importance of upstream-downstream collaboration for mutual growth.

Industry representatives noted that while the U.S. is imposing high tariffs on Chinese imports, it has inadvertently opened a window for Taiwanese suppliers. The U.S. hand tool market primarily sources products from China and Taiwan—China for large-volume orders and Taiwan for high-precision, value-added tools. With the current tariff structure, U.S. buyers are increasingly turning to Taiwanese manufacturers to meet demand, particularly for advanced tools.

However, cost competitiveness remains crucial. Taiwanese companies stressed that unless total costs—particularly those related to raw materials—are favorable, overseas customers may still opt to stay with existing suppliers. In this context, the industry is calling on CSC to offer more competitive steel pricing to help local firms secure these newly available orders.

A report presented by CSC’s Market Research Division also highlighted divergent consumer trends. In the U.S., car sales have recently surged, driven by fears of potential price hikes, while in Taiwan, consumers are delaying purchases in anticipation of possible tariff or tax cuts. This contrast underscores the broader uncertainties in global trade and the importance of market responsiveness.

Despite ongoing challenges such as currency fluctuations and policy unpredictability in major markets, the Taiwanese hand tool sector views the current trade environment as a rare opportunity to boost exports and establish a stronger foothold in the U.S. market.