US-Taiwan 15% Tariff Deal to Stabilize Changhua’s Plumbing Sector

Changhua, Jan 16 (CNA) – Wei-chen Cheng

Taiwan's reciprocal tariff drops to 15% with non-additive to MFN rates. Chia-Lieh Chang, the chairman of the Plumbing Association of Taiwan in Changhua County, is optimistic that the industry will stabilize by mid-year.

As the U.S.-Taiwan trade talks concluded on January 15 (U.S. East Coast), Taiwan's Executive Yuan confirmed key negotiations, including a 15% reciprocal tariff, optimal 232 treatment for semiconductors, expanded supply-chain investment, and strategic U.S.-Taiwan partnerships.

Chairman Chang suggested that Changhua's plumbing sector generates NT$60 billion annually, with 70% exports to the United States, at margins above 10%. Original duties ranged 4-8%. Post the April 2024 reciprocal tariffs, clients front-loaded orders, depleting H2 quotas by H1, boosting early volumes. Later, 20% additive tariffs cooled the demand; clients ordered conservatively.

Some factories staggered shifts, while brands and clients initially absorbed duties, hikes have forced producers to share costs and tighten margins. The 15% non-stackable rate now levels Taiwan with Japan and Korea, said Chairman Chang.

Post the tariff shock, firms are starting to reassess European and global market opportunities. Differing market regulations may demand time, but Chairman Chang sees Taiwan's competitive edge in its plumbingware manufacture. If firms could internalize digitalization, automation, and cost discipline, the sector would gain leverage under fairer duties. Chairman Chang forecasts a recovery in the plumbingware industry in Q1 to Q2.