The United States’ tariff policy has affected Taiwan’s consumer sentiment significantly, with a recent consumer optimism survey showing numbers similar to those during the 2020 COVID-19 drop. Additionally, DHL suspended delivery of goods over US$800 on Monday, which is likely to further affect Taiwan’s already battered shipping industry.
DHL’s announcement comes after an April 5 customs regulations change, which previously allowed lighter customs entry processing on all goods valued below US$2,500 and now requires a more complicated formal customs entry on packages US$800 and up. DHL said that this is a temporary measure and only business-to-consumer shipments have been halted.
Former Committee for International Ocean Freight Forwarders and Logistics Chairman Chen Mu-Zhi (陳木枝) said that, following the 32% tariff on Taiwanese imports, exports to the U.S. significantly declined. Even with the 90-day suspension, orders saw reductions of 20% - 30%, with nothing they can do but wait and see if the policy changes further.
Consumer confidence data seems to mirror Chen’s statements. According to Cathay Financial Holdings’ (Cathay FHC) latest April consumer confidence surveys, the public’s economic optimism has plummeted. Looking at eight confidence indexes, all but the price index saw a sharp drop following the tariff announcements, including the economic outlook optimism, which dropped to -41.3, the lowest since the COVID-19 pandemic. However, an employee for Cathay FHC pointed out that it is possible the low numbers are the result of polling being held the same week as the tariff announcements, and that May’s numbers are likely to see a rebound.