Taiwan Firms Face Headwinds: US Tariffs Trigger Furloughs

Economic Fallout from US Trade Policies Impacts Taiwanese Manufacturing

Taipei, Taiwan - In a clear indication of the ripple effects of global trade tensions, three Taiwanese companies have been forced to implement furlough or unpaid leave programs. This action is a direct consequence of the tariffs announced by former U.S. President Donald Trump earlier in April, according to the latest data released by the Labor Ministry.

Labor Ministry official Hou Sung-yen (侯松延) revealed that the programs are expected to affect between 200 and 300 workers. The information was shared on Thursday.

Citing information gathered from local governments, Hou explained that two of the three companies had applied for permits to initiate furlough programs for the first time. Both companies operate within the manufacturing sector.

One company specializes in the manufacturing of electric outlets, while the other produces automotive components and hardware tools. The companies directly attributed the need for furloughs to the U.S. tariffs imposed on exported goods, according to Hou.

These three firms are now included in the Ministry's latest furlough statistics, which show that a total of 2,266 individuals from 131 companies were placed on unpaid leave by the end of April. This represents an increase of 584 workers and 21 companies compared to the figures for March.

Despite the monthly increase, Hou noted that the April figures were actually the lowest for the same period in the past six years. The majority of affected workers are concentrated in the manufacturing and wholesale/retail industries.