On August 1, the White House officially announced that a 20% reciprocal tariff would be imposed on Taiwan, effective on August 7.

Overall, the 20% reciprocal tariff imposed by the US on Taiwan will have little impact on the steel industry, as steel and aluminum exports to the US are still subject to the 50% tariff under Section 232.

However, the impact on downstream products such as hand tools and machine tools will be greater. In response, China Steel Corporation (CSC) emphasized that it will flexibly adjust its operational strategies and actively assist its customers in mitigating the impact.

Preliminary assessments indicated that the reciprocal tariff will have a limited impact on CSC's direct exports, but the impact on downstream customers requires continued observation.

Chairman Chien-Chih Hwang emphasized that while the 50% tariff on steel and aluminum is most important to the steel industry, it applies to all countries globally.

A senior steel industry insider pointed out that the biggest issue for the steel industry at present is how to obtain a reduction in steel and aluminum tariffs.