Taipei: The value of imported sedans in Taiwan experienced a significant drop of more than 22% in the first half of the year as consumers held off on purchases in anticipation of potential tariff reductions amid ongoing negotiations between Taipei and Washington.
According to Focus Taiwan, this decline represents the steepest in 16 years, with the total value of sedan imports reaching US$3.34 billion from January to June.
Data from the MOF revealed that sedan imports from the United States saw the most significant decrease, plummeting 37.5% to US$311 million. The MOF attributed this substantial decline to consumer expectations of reduced vehicle tariffs and commodity taxes, which are currently under negotiation between Washington and Taipei.
On April 2, the administration of U.S. President Donald Trump announced significant "reciprocal" tariffs on imports, which included a 32% levy on goods from Taiwan. However, a 90-day pause was implemented on April 9 to allow for negotiations aimed at lowering these rates. Vice Premier Cheng Li-chiun, who recently returned from discussions in Washington, emphasized that negotiations are at a "crucial stage" and urged the public to remain patient.
The MOF data also highlighted that sedan imports from Germany and Japan fell by 26.8% and 3.19%, respectively, amounting to US$1.09 billion and US$1.05 billion in the first half of the year. Meanwhile, the import value of capital equipment increased significantly, driven by strong demand for semiconductor and information communication equipment, rising nearly 60% compared to the previous year.
In terms of exports, Taiwan saw a 22.2% increase in sales of electronic components, reaching US$98.7 billion in the first half of the year. This growth was largely fueled by the expanding popularity of artificial intelligence applications. Exports of integrated circuits surged 23.5%, or US$17.6 billion, during the same period, as demand for AI-related electronics boosted shipments of advanced chips.
Additionally, exports of capacitors and resistors rose 11.3% year-on-year due to the growing demand for high-end models amid AI advancements. Exports of printed circuit boards (PCBs) experienced a 4.8% increase, driven by higher demand for AI servers. However, exports of light-emitting diodes (LEDs) declined 7.4% year-on-year, marking the fourth consecutive year of decline amid rising competition from China.