U.S. tariff uncertainty pushes Taiwan's businesses in Vietnam to pivot

Hanoi, April 12 (CNA) Taiwanese businesses in Vietnam are exploring alternatives after the United States imposed a 46 percent import duty on Vietnamese goods, following President Donald Trump's announcement of "reciprocal" tariffs on America's trading partners.

Lo Shih-liang (羅世良), chairman of Brico Industry Co., Ltd., a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said over 40 percent of his business was tied to the U.S. market, describing the constant U.S. policy shifts as an emotional roller coaster ride in a recent interview with CNA.

"I work during the day and stay up all night watching the news. I've been following U.S. news until 3 or 4 a.m.," said Lo with a wry smile.

Up until recently, Lo was deeply worried about the 46 percent tariff on Vietnam announced by Trump on April 2 -- one of the highest rates among the dozens of targeted countries.

However, he told CNA he now feels somewhat relieved -- though not entirely at ease -- after the Trump administration announced a 90-day pause on Wednesday (Washington time) for nearly all of the targeted countries, including Vietnam but excluding China.

Sharing the same emotional turmoil is Sun Chi-an (孫其安), the general manager of a factory in Vietnam's Bắc Ninh Province operated by Johnson Health Tech. Co., Ltd., a Taiwanese company that manufactures fitness equipment.

Sun said he has had trouble sleeping, adding, "I've been watching CNN every night to keep track of any tariff changes."

To Sun, the 46 percent tariff came as a surprise, given that U.S.-Vietnam relations appeared to be on good terms.

In the face of uncertainty, he said the company does not want to make major adjustments that could affect the stability of production quality, especially as customer demand remains.

As a result, production and raw material preparation in his company are continuing as scheduled, and efforts are being made to retain factory manpower, Sun added.

Although upcoming negotiations between Hanoi and Washington may lead to lower tariffs, Sun said it was unlikely that the "reciprocal" tariff will be fully lifted, meaning his company's production costs will inevitably rise.

He said his company plans to discuss cost-sharing with suppliers and assess competitors' strategies, with the latter move aiming to offset the impact of the tariffs by passing some of the additional costs to consumers.

Sun said the "reciprocal" tariffs also present an opportunity, as most of Johnson's competitors rely heavily on supply chains in China, and the tariff on Vietnam, though expected to remain high after negotiations, will likely be lower than the rate imposed on China.

As of Saturday, the U.S. imposed a minimum tariff rate of 145% on all imports from China.

Meanwhile, Lo said Brico is using the 90-day window to coordinate with clients, suggesting they take stock, assess their inventory, or place orders early so shipments can reach the U.S. within the pause period.

He added that transferring goods to the company's warehouses in Mexico could also be an option, which would provide greater flexibility.

Lo said the company previously focused on developed countries with strong consumer purchasing power, but its long-term market strategy is shifting.

Brico is now targeting mid-tier markets in regions such as the Middle East and Europe, aiming to reduce its reliance on the U.S. market from 45 percent to around 30 percent, he added.