Reported about 1 year ago
China announced the suspension of tariff preferences under the Economic Cooperation Framework Agreement (ECFA) at the end of May, affecting 134 products including petrochemicals, textiles, machinery, steel and metals, and transportation equipment, effective from June 15. This move imposes 1% to 12% tariffs on these products exported to China, potentially leading to Taiwanese manufacturers establishing plants in China to avoid tariffs. With tensions escalating post-520, these actions stem from Taiwan's failure to lift trade restrictions and acknowledge the '1992 Consensus'. The machinery and automotive parts-related tariffs in the second batch could impact many Taiwanese SMEs, with estimates indicating a potential decrease in machinery exports by 0.5% due to restored tariffs at 5% to 10%.
Source: YAHOO