Taiwan Auto Parts Makers Navigate US Tariffs, Eye Egypt as Gateway, says TAITRA Chairperson

Daily News Egypt

24-04-2025

Amid ongoing trade tensions and shifting global supply chains, Taiwan's crucial auto parts industry is actively seeking diversification, with markets like Egypt emerging as key strategic locations, according to James Huang, Chairperson of the Taiwan External Trade Development Council (TAITRA).
Addressing concerns about the impact of US tariffs and exploring new market opportunities, Daily News Egypt asked Huang about Egypt's potential as a significant hub. Since it can play a major role for Taiwanese companies as a gateway for both Middle Eastern markets and African markets, Huang acknowledged when asked about Egypt's strategic importance.
Having visited Egypt twice in recent years, Huang noted the existing manufacturing presence, including European Original Equipment Manufacturers (OEMs). 'We are looking to closer partnership with our Egyptian counterparts,' he stated, adding awareness of significant activity, such as Hyundai's 'very, very aggressive' presence in the country. While Taiwan primarily focuses on parts rather than whole car manufacturing, Huang sees potential, particularly as Egypt's industry shows interest in electric vehicles (EVs). 'I'm sure Foxconn will be quite interested in the Egyptian market,' he speculated.
This interest in Egypt and the wider Middle East/Africa region is part of a broader strategy driven significantly by US trade policies. Huang confirmed that a 25% tariff applies to Taiwanese auto parts entering the United States. While downplaying panic, advising exhibitors simply 'business as usual,' he acknowledged the significant impact and the resulting strategic shifts.
'The situation is a little bit fluid,' Huang said regarding the tariffs' effects. 'We are not certain about the policies.' He noted that while the US remains Taiwan's largest single market (accounting for roughly 50% of auto part exports previously), the tariffs, coupled with geopolitical shifts and US policy encouraging domestic supply chains, are accelerating diversification and localization.
'In the past two or three years, because of the shift in geopolitics and US government's policy to establish key supply chains in the United States, our companies… I think they are aware of those changes,' Huang explained.
He revealed that some Taiwanese firms have already moved manufacturing operations to the US or Mexico to mitigate tariff impacts and leverage the USMCA trade agreement. 'Some of them have already gone to United States and are manufacturing in the United States… localized,' he said. 'And some went to Mexico.' He emphasized that the 25% tariff affects all players, not just Taiwan, stating, 'All competitors, they also get the hit.'
This came on the sidelines of Taipei AMPA and E-Mobility Taiwan officially opened Wednesday under the newly unified brand—360° MOBILITY Mega Shows Organized by TAITRA.The show marks a major milestone for Asia's smart mobility industry in 2025 demonstrating Taiwan's innovation and supply chain capabilities in the era of intelligent and sustainable mobility.
Global Diversification and EV Ambitions
Beyond North America and the Egypt/Middle East/Africa nexus, TAITRA is encouraging companies to explore opportunities in the EU, Southeast Asia, and even Japan, where Taiwan already collaborates closely with the auto industry. The UK is also considered an 'important partner' and 'destination,' with a TAITRA office in London fostering ties with OEMs like Jaguar Land Rover.
South America, particularly Brazil with its large auto industry and Taiwanese diaspora, is another focus area, utilizing returning bilingual talent to bridge market gaps.
Regarding Taiwan's own potential in the EV space, Huang conceded that Taiwan 'missed the opportunity' to become an Internal Combustion Engine (ICE) vehicle manufacturing power. However, he sees a significant opening in EVs, leveraging the island's strengths.
'We are good at auto parts and electronics,' Huang asserted. 'In terms of EV, I think we have a chance… software matters, and car electronics matters. I think we are quite good in integrating software [and] car electronics.'
Foxconn is leading this charge, producing EVs domestically and aggressively seeking global partnerships, including its joint venture in Saudi Arabia for regional EV production and reported talks with Nissan. Other major Taiwanese electronics manufacturing service (EMS) companies like Pegatron and Delta are also heavily involved in the EV supply chain.
While Foxconn is currently the primary Taiwanese company attempting to produce its own branded EVs, the nation's broader strength lies in providing the critical electronic systems, software integration, and advanced components powering the global shift towards electrification.