
Taipei, July 16 (CNA) Taiwan-based textile companies Eclat Textile Co. and Makalot Industrial Co., which produce more than 80 percent of their goods in Vietnam and Indonesia, said they are somewhat relieved by the latest tariff rates imposed by the United States on the two countries.
On Tuesday, the Trump administration announced it had reached a deal to impose 19 percent tariffs on Indonesia-made products, down from the 32 percent it threatened in early April.
That come after the United States reached an agreement with Vietnam in early July to impose a 20 percent tariff on goods from that country, down from the threatened 46 percent.
Both Eclat and Makalot said tariffs in the 19 percent to 20 percent range were acceptable levels and that the increased costs were not gamechangers.
Tiffany Lin (林芬如), Eclat's vice president of finance and accounting, told CNA that the tariff issues were evolving in a "positive" direction and that Eclat would negotiate pricing with its clients based on the new tariffs.
According to the company, which is believed to produce garments for international brands such as Nike, Under Armour and Lululemon Athletica, Vietnam accounts for up to 65 percent of its total production and Indonesia for another 25 percent.
There had been speculation that Eclat was putting off new investments in Indonesia due to the very high tariff announced originally, but Lin said that Eclat's overseas investments were proceeding as planned and were necessary for its expansion.
At the end of June, the company announced it would inject US$41 million in a rights issue proposed by its Indonesian subsidiary Eclat Textile International, paving the way for construction of a third facility in Indonesia, Lin said.
Makalot, meanwhile, gets 42 percent of its total production from Indonesia and 38 percent from Vietnam, according to company spokesperson Hengyu Lin (林恆宇).
"With the two countries striking a deal with the United States, worries in my heart have been reduced by half," Hengyu Lin said.
Hengyu Lin said Makalot will wait for the outcome of tariff negotiations with other U.S. trading partners to be finalized before the company discusses with its clients how to share the financial burden of the tariff hikes.
Outside the textile industry, Teco Electric & Machinery Co., one of Taiwan's leading electromechanical brands, also hailed the tariff arrangement for Indonesia, where the company produces power transformers.
Demand for power transformers from the U.S. has remained solid, Teco said, and the lower tariff rate for Indonesia will make products rolled out by its Indonesia facility more competitive in the American market.
According to Teco, the cost structure of its power transformer facility in Indonesia is lower than that of counterparts in Taiwan, Japan and South Korea.
In late September 2024, Teco acquired a 57.2 percent stake in Taiwan-based power transformer maker Shenchang Electric Co.
After the acquisition, Teco said, the company has set up a strategic partnership with Shenchang's Indonesian affiliate P.T. Sintra to expand its product portfolio in the Southeast Asian country with an eye toward North America and Taiwan.
- Politics
Military conducts in-depth defense drill in Taichung
07/16/2025 09:01 PM - Society
18 indicted in transnational human smuggling operation
07/16/2025 08:46 PM - Politics
Suspended Hsinchu mayor denies misconduct at televised recall forum
07/16/2025 07:47 PM - Politics
Control Yuan to probe project extending high speed rail to Yilan
07/16/2025 07:24 PM - Society
Environmentalists appeal Keelung LNG station EIA decision
07/16/2025 05:55 PM