New Taiwan Dollar's Sharp Rise Hits Smaller Manufacturers

TaiwanPlus News

Taiwan's small and medium-sized enterprises are taking a hit from the sharp appreciation of the New Taiwan dollar. Businesses were already facing pressure from U.S. President Donald Trump's impending tariffs. Now, the economy ministry is hoping to use hedging to help businesses balance risk from market fluctuations.

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00:00In Taiwan's screw manufacturing capital, every order counts.

00:06The country is one of the biggest exporters of fasteners in the world.

00:10But in 2025, these businesses have been hit with some major concerns.

00:15First, tariffs of 32 percent for exports to the U.S.,

00:19paused at least until July 9 and under negotiation.

00:23And now, the sudden rise of the new Taiwan dollar against the greenback,

00:26which manufacturers say has reduced profits to nearly zero.

00:43As the Taiwanese dollar strengthens,

00:45it hurts the industry's already low profit margins with key customers, including the U.S.

00:50And the small enterprises that make up the screw supply chain are feeling the hit.

00:55The economic affairs ministry has asked state-owned banks to help small and medium-sized enterprises deal with exchange rate fluctuations.

01:13Economists call the strategy of balancing the risk from those dips and spikes hedging.

01:18As the industry copes with losses from the strengthening NT dollar,

01:31it's hoping that the government can help lessen the impact sooner rather than later,

01:36especially as it braces for a possible resumption of U.S. tariffs next week.

01:40Joseph Wu and Tiffany Wong for Taiwan Plus.

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