On July 7, 2025 (local time), U.S. President Donald Trump announced a 25% tariff on Japanese and Korean products, with tariffs on Taiwanese goods to be announced shortly. Taiwan’s auto parts exports to the U.S. account for a significant share, with export values exceeding NT$79.6 billion in 2024 and showing an upward trend year by year. The tariff hike will indirectly raise the retail price of auto parts in the U.S., weakening the price competitiveness of Taiwanese suppliers in the American market and posing a major challenge to Taiwan’s auto parts industry.
Rising Export Costs
After the U.S. increases tariffs, the prices of Taiwanese auto parts will also rise, with increases potentially reaching 20–30%. This will significantly reduce the willingness of U.S. automakers to purchase Taiwanese parts, pushing them toward sourcing from other countries or local brands.
Setting Up Factories in the U.S.
Relocating production lines to the U.S. can avoid import tariffs and reduce production costs.
Shifting Focus to Southeast Asian Production
With global trade conditions changing, many industries are directing large portions of production orders toward the domestic markets of Southeast Asia, reducing dependence on exports and avoiding profit loss from high tariffs.
For example, Vietnam attracts global companies due to low labor costs, a high proportion of young workers, proactive government investment incentives (such as tax breaks and land lease benefits), and its geographic advantages. HA-KUO has followed global industrial relocation trends by establishing a base in Bac Ninh, Vietnam, providing localized services and automation resources. The U.S.–China trade war and geopolitical shifts have further made Vietnam a key winner in global industry relocation from China.
Similarly, Thailand enjoys tariff advantages for exports to the EU, Japan, and the U.S., and Japanese automakers like HONDA and TOYOTA have long invested heavily there. Thailand has also launched its “30@30 EV Development Policy,” aiming for electric vehicles to make up 30% of domestic car production by 2030, supported by tax breaks and subsidies to become a regional EV manufacturing hub.
Improving Production Efficiency to Offset Tariff Costs
Enhancing processes, increasing output per unit, and reducing scrap rates can boost profit margins. Standardization and automation not only improve production efficiency but also help absorb cost increases caused by tariffs.
In auto parts manufacturing, robotic arms—often paired with vision systems—can instantly identify and remove defective products, preventing defects from entering subsequent processes, thus reducing scrap losses and quality control pressures.
1. Body System Components
Includes external structural and decorative parts such as bumpers and door trim panels.
2. Interior System Components
Includes instrument panels, gear shifters, seatbelt buckles, and other driver interface and passenger safety devices that provide convenience and protection.
Using HI-MORE’s robotic arms can significantly shorten production cycles, accelerate manufacturing speeds, and stabilize output.
For large auto parts, the THS series supports payloads of 15–35 kg, making it ideal for large items such as bumpers and door panels, effectively solving labor fatigue and reducing manual handling errors.
The GT series (850/950 models) robotic arms are designed for handling small auto parts like seatbelt buckles, offering high precision, speed, and stability—boosting production efficiency and line rhythm.
