Asian manufacturers are scrambling to ship goods before the end of a 90-day reprieve granted by the Trump Administration on new tariffs affecting countries outside China.
With the clock ticking, firms across the region are reportedly accelerating production and shipments, fearing the financial impact once the tariff window closes.
In the industrial hub of Taichung, Taiwan, manufacturing activity is ramping up significantly.
Local sources suggest that some Taiwanese companies are planning to dispatch up to a year’s worth of stock and supplies within the next three months to avoid steep tariff costs later in the year.
Industry insiders report that shippers and suppliers are working round the clock to meet anticipated demand and secure their place on outgoing cargo routes.
This sudden surge has placed added pressure on logistics networks, port operations, and raw material procurement.
Representatives from the Taiwan Machine Tool & Accessory Builders’ Association (TMBA) recently attended a closed-door meeting with lawmakers, where they aired their concerns regarding the looming economic impact.
According to those familiar with the discussions, the TMBA stressed the urgent need for support in expediting production and overcoming logistical hurdles during this critical period.
“Time is of the essence,” said one industry representative.
“The uncertainty surrounding US trade policy is forcing companies to act swiftly, even if it means overextending production capacity temporarily.”
While the Taiwanese government has not officially commented on the TMBA meeting, sources indicate that contingency measures are being reviewed to support exporters in navigating this transitional phase.
The rush to export goods before the tariff implementation is likely to lead to temporary gains in output and shipping volume.
However, analysts warn that the longer-term consequences of continued trade tensions may dampen investment and strain manufacturing sectors that are heavily reliant on international demand.
For now, the atmosphere in Taichung is one of urgency, with factories and freight companies operating at full tilt.
As the 90-day countdown continues, the race is on for Taiwanese manufacturers to stay ahead of an unpredictable geopolitical curve. SOURCE: Nikkei Asia, Bloomberg and South China Morning Post.