Wait-and-See Sentiment Dissipates as Tariffs Are Settled
The Ministry of Economic Affairs held a press conference on the 28th on guidance measures and results for the fastener industry. Chiu Chiu-hui, Director-General of the Industrial Development Administration, said the impact of U.S. tariffs on fastener orders has passed. After Section 232 tariffs were settled, customers' wait-and-see attitude faded, and demand returned as inventories were digested, with everything back to fundamentals. Judging from the overall trend, coupled with government resources, this year's output is viewed positively as rising quarter by quarter, and participating industry players agreed that orders this year are better than last year.
Output Returns to 400億元 Level
Chang Shang-chun, head of the Metal and Machinery Division of the Industrial Development Administration, noted that affected by reciprocal tariffs, the fastener industry's output began to slide in the second quarter of last year, hitting a recent low of 369.2億元 in the third quarter of last year, rising to 369.2億元 from the fourth quarter of last year, recovering to 371.8億元 in the first quarter of this year, and reaching 406.6億元 in the second quarter of this year, up 9.4% quarter on quarter, returning to the 400億元 level after four quarters, showing that business conditions have gradually stabilized.
Industry Players: Orders Down Only About 10%
Huang Chih-jung, special assistant at Zhen Nan Iron Wire, said that after the steel Section 232 tariff was settled at 50%, orders have stabilized, with orders estimated down only about 10%. However, ordering patterns have changed: when business was good, customers mostly placed annual orders, but now they place orders quarter by quarter. Chou Heng-ching, special assistant at Jieluo Industrial, said the company focuses on the OEM automotive market, where customers value key technology, quality and stable operations, and U.S. automakers mostly prefer Taiwan fasteners. After tariffs were settled, cost-sharing arrangements can be negotiated with customers, with little impact on orders. Chen Yu-shan, spokesperson for Jin Quanyi, said the company has already received many U.S. orders this year. China's advantage lies in low prices, while Taiwan's advantages are technology, on-time delivery and quality management, so tariffs have had limited impact on orders.
High-End Fasteners Retain Competitive Edge
Chiu Chiu-hui analyzed that high-end fasteners must pass certification and build partnerships to enter the market and suppliers will not be easily switched because of tariffs, allowing cost-sharing to be coordinated once tariff rates are settled. Although low- and mid-range products may be affected by prices, the 50% Section 232 tariff applies equally to all countries, leaving relative competitiveness unchanged, and China faces an additional stacked rate reaching 70%, so Taiwan retains an advantage. There are about 2,000 fastener makers in Taiwan employing 40,000 people, with exports accounting for 95%, the U.S. accounting for 40% and the EU nearly 30%. The Ministry of Economic Affairs has guided 209 companies in adopting AI tools, assisted 104 companies in developing high-value fasteners for electric vehicles, drones and high-end servers, approved 718 small and micro loans totaling 25.6億元, and facilitated overseas business opportunities of US$32 million and US$120 million.