Author：Yu Shi Bo Director of Green Energy Center, Ji-Pu Industrial Trend Research Institute

At the end of July 2025, after half a month's wait, the U.S.-Taiwan tariff agreement was finally finalized with the tentative result of 20%. Although the government said that it would still try its best to strive for a better tariff rate and the details have not yet been specified, regardless of whether or not the preferential treatment can be further reduced in the end, the addition of 20% to the current tariff rate has already become a fact that can be foreseen in the short term.

Small vehicle volume, mainly parts, impact focus on AM market

Since Taiwan's vehicle exports are almost negligible, it will not be the main battleground for this wave of tariffs. According to the statistics of the Ministry of Economic Affairs, there are about 1,741 automotive component manufacturers in Taiwan, and their sales to the U.S. market in the past three years have exceeded NT$100 billion, of which more than half of the total sales have been to the U.S. market.