Sedan import value down 22% in Taiwan amid tariff uncertainty

Taipei, July 19 (CNA) The value of imported sedans in the first half of the year plunged more than 22 percent from a year earlier, as many consumers put their purchase plans on hold in hopes of a tariff reduction for Taiwan during the ongoing negotiations between Taipei and Washington, according to the Ministry of Finance (MOF).

Data released Thursday by the MOF showed that the value of sedan imports totaled US$3.34 billion in the period January to June, down 22.2 percent from a year earlier, which was the steepest decline in 16 years.

Sedan imports from the United States suffered the largest year-on-year drop, falling 37.5 percent to US$311 million, the MOF said, attributing the sharp decline to consumers anticipation of reduced vehicle tariffs and commodity taxes during the ongoing negotiations between Washington and Taipei.

On April 2, the administration of U.S. President Donald Trump unveiled sweeping "reciprocal" tariffs on imports, including a 32 percent levy on Taiwan goods, before announcing a 90-day pause on April 9 to allow the U.S.' trading partners to negotiate for lower rates.

Negotiations between the U.S. and Taiwan are at a "crucial stage," according to Vice Premier Cheng Li-chiun (鄭麗君), who returned from the latest talks in Washington late last week and urged the Taiwan public to be patient.

Meanwhile, the value of Taiwan's imported sedans from Germany and Japan fell by 26.8 percent and 3.19 percent, respectively, to US$1.09 billion and US$1.05 billion, in the first half of the year, the MOF's data showed.

Outside the auto market, the MOF said, the import value of capital equipment was boosted by solid demand for semiconductor and information communication equipment, surging almost 60 percent in the first half of the year from a year earlier.

On the export front, Taiwan's sales of electronic components rose 22.2 percent from a year earlier to US$98.7 billion in the first half of the year, driven by the growing popularity of artificial intelligence applications.

Taiwan's exports of integrated circuits soared 23.5 percent, or US$17.6 billion, from a year earlier during the six-month period, as demand for AI applications for electronics gadgets boosted shipments of advanced chips, the MOF said.

In addition, Taiwan's exports of capacitors and resistors spiked 11.3 percent year-on-year, driven by growing demand for high-end models amid AI development, while exports of printed circuit boards (PCBs) rose 4.8 percent on rising demand for AI servers, the MOF said.

However, amid escalating competition from China, exports of light-emitting diodes (LEDs) fell 7.4 percent year-on-year in the six months, marking the fourth consecutive year of decline, the MOF said.