TAIPEI (TVBS News) — Taiwan's Ministry of Labor (勞動部) reported Firday (Aug. 1) that 66 companies have implemented reduced work hours due to tariff impacts, affecting 1,735 employees. This represents an increase from the period ending July 16, when 56 companies reduced worker hours affecting 1,417 employees. President Trump's announcement of a 20% Taiwan tariff this morning (Aug. 1) threatens to force additional businesses into work reductions as they navigate shifting global trade conditions.
Ministry of Labor statistics show that 190 businesses have negotiated reduced work hours due to various economic pressures, impacting 3,441 workers across Taiwan. Manufacturing dominates the affected sectors with 142 companies, concentrated heavily in metals and equipment production. Retail and wholesale industries also face substantial challenges, with 36 businesses implementing shortened work schedules for their employees.
America's new tariff rate takes effect Aug. 7, representing a substantial reduction from the 32% rate proposed in April. Taiwan's 20% assessment still exceeds the 15% rates imposed on South Korea and Japan, potentially undermining Taiwanese export competitiveness in global markets. President Lai Ching-te (賴清德) emphasized earlier today that the current rate remains temporary while bilateral negotiations continue. ◼