Taiwanese printed circuit board (PCB) manufacturers may scale back production in Thailand due to a steep 37% reciprocal tariff imposed by US President Donald Trump.

Li Chang-ming, former chairman of the Taiwan Printed Circuit Association, said the unexpectedly high tariff could deter further investment in Thailand, where 14 Taiwanese PCB firms operate. These include Unimicron, Compeq, and Gold Circuit Electronics.

The tariff, announced on April 2, introduced a 10% baseline duty on US imports. Higher rates were set for countries with large trade surpluses: 37% for Thailand, 32% for Taiwan, 46% for Vietnam, and 34% for China.

A 90-day pause was later announced, lowering all rates to 10% except for China.

Li noted the tariffs may prompt Taiwanese firms to slow production of US-bound goods in Thailand, a key base chosen to avoid US-China trade tensions.

🔗 Source: Focus Taiwan

🧠 Food for thought

1️⃣ Southeast Asia’s shifting role in electronics manufacturing amid trade tensions

Thailand has become a key manufacturing hub for Taiwanese PCB makers, with 14 companies establishing production bases there as they attempted to escape previous US-China tariff impacts.

This strategic shift is now backfiring as these companies face a significant 37% reciprocal tariff on goods exported from Thailand to the US, potentially nullifying their previous supply chain adaptations 1.

Thailand’s Commerce Ministry estimates potential losses of 880 billion baht (approximately $26 billion) from these tariffs, with electronics being among the hardest-hit sectors alongside automotive parts and semiconductors 1.

The situation illustrates how manufacturers have been caught in a “tariff whack-a-mole” scenario, where avoiding one set of tariffs by relocating production has led to being targeted by new ones, creating persistent uncertainty in global supply chains.

Companies like Dynamic Electronics provide an example of how tariff impacts can cascade through operations, as they previously had to lay off hundreds of employees partly due to losses stemming from trade war effects 2.

2️⃣ Tariff exemptions create complex supply chain decisions

Trump’s recent exemption of smartphones, computers, and other finished electronic products from reciprocal tariffs creates a complicated landscape for component manufacturers like PCB makers 3.

While end-products enjoy protection, the supply chain components that go into those products—including printed circuit boards—may still face tariffs, creating an uneven competitive field 4.