Trump's steel tariffs to put Taiwan on equal footing: Association

Taipei, Feb. 11 (CNA) A move by U.S. President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, according to the Taiwan Steel & Iron Industries Association.

Speaking with CNA, Hwang Chien-chih (黃建智), head of the association, said such an equal footing is expected to boost Taiwan's competitive edge against other countries in the U.S. market as Taiwanese steel exporters have been hit by a 25 percent tariff by the United States since the late 2010s, describing the tariffs as "positive" for Taiwanese steel exporters.

On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective in March.

According to international news media, Taiwan ranked the eighth largest steel exporter to the U.S. market in 2024, selling 1.01 million tons of steel products, behind Canada (6.56 million tons), Brazil (4.50 million tons) and Mexico (3.52 million tons).

Hwang, the chairman of China Steel Corp., the largest steel maker in Taiwan, said the new executive orders, which will take away an exemption status from Canada, Mexico, Japan and the European Union, are expected to help Taiwan to sell more steel products to the United States.

Hwang said the tariffs are expected to push up steel prices in the U.S. market, which is also expected to benefit Taiwan's exporters.

According to Hwang, prices of hot rolled steel products have risen to US$837 per ton from US$767 since Trump took office on Jan. 20, and the prices could hit US$1,000 per ton shortly due to the tariffs.

Meanwhile, an executive from Yieh Phui Enterprise Co., another major steel supplier in Taiwan, said the 25 percent tariffs mainly targeted the leading exporters such as Canada and Mexico, which enjoyed a large trade surplus with the U.S.

Once the new tariffs become effective, the executive said, steel imports to the U.S. market are expected to move lower, which could push up product prices there.

Riding the waves of increasing steel prices in the U.S. market, the executive said, Yieh Phui is expected to see growing profitability. Currently, the U.S. market accounts for half of Yieh Phui's total exports.

Chung Hung Steel Corp., another Taiwanese steel maker, said the new tariffs will change the current unfair competition on the U.S. market as many countries enjoy an exemption, a positive trend to Taiwan.

However, Hwang said Trump's tariffs on steel could cut both ways for Taiwan's exporters.

He said these countries which will be taking away tariff exemption are likely to ship their products to other markets such as Asia or Europe at lower prices to make up the losses in sales in the U.S. market, which could place Taiwan under new competition.

He added as the new tariffs will not go into effect until March, Trump could change his mind before that, urging Taiwanese exporters to keep a close eye on the situation.