The effect of the Trump administration's tariff war, TV panel prices rose across the board

Due to the effects of the Trump administration’s tariff war, the traditional off-season prices of TV panels have continued to rise against the trend this season. Not only have brand manufacturers rushed to expand their inventory before all tariffs were finalized, pushing up prices, but Innolux (3481) General Manager Yang Zhuxiang also bluntly stated yesterday (18th): "The Trump administration's tariff war is beneficial to Taiwan's panel manufacturers."

The latest report from market research firm CINNO Research pointed out that the US policy of raising tariffs on China by 10% was implemented in February, but the uncertainty risk of increasing tariffs on Mexico and other places has increased. In order to rush to increase panel procurement demand before all tariffs were finalized, panel manufacturers only slightly increased their capacity utilization, causing TV panel prices to rise across the board in February. Panel-related industry players analyzed that even though the US has finalized the 10% tariff on China, there are still many uncertainties such as Mexican tariffs and reciprocal tariffs, which are related to whether TV manufacturing will be moved back to Asia and affect panel prices.

Yang Zhuxiang pointed out in an interview yesterday that the United States does not have a panel industry. If Mexico's tariffs on exports to the United States are raised from zero to 25%, and China's tariffs are raised to 21.4%, Taiwan's tariff is 3.9%, brand manufacturers will inevitably transfer finished product manufacturing to Asia, "which is more beneficial to Taiwan's panel manufacturers" because Taiwanese manufacturers can enjoy the benefits of shortened delivery time, reduced transportation costs, and reduced working capital for customers. Regarding the Trump administration's tariff war, AUO Chairman Peng Shuanglang believes that since the final tariff rate has not yet been finalized, AUO has included it in the company's risk control priority items to maintain a flexible and dynamic response strategy.

CINNO Research's latest report pointed out that during the Spring Festival, the mainland's official subsidy policy continued to release its effectiveness, and market demand remained strong in the short term, driving the price of large-size TV panels to continue to rise. CINNO Research expects that the price supply of small and medium-sized TV panels such as 32 inches to 55 inches in February will be relatively tight, and is expected to increase by another US$1, to US$34, US$65, US$94 and US$119 respectively. The demand for popular large-size TV panels such as 65-inch, 75-inch, and 85-inch is even stronger, and there is room for an increase of $2, which is expected to rise to $170, $228, and $308 respectively. Industry analysts believe that the rise in TV panel prices will not only affect the costs and profits of TV brand manufacturers, but may also be transmitted to the terminal consumer market. Consumers will find that the price has increased when buying TVs. The entire TV industry chain upstream and downstream needs to actively adjust strategies to respond to market changes.