In response to shifts in trade dynamics, the bicycle contract manufacturing factory plans to build a new factory in Vietnam by 2025 to supply Europe.

Taiwan • Business • 04/29 07:04
In response to shifts in trade dynamics, the bicycle contract manufacturing factory plans to build a new factory in Vietnam by 2025 to supply Europe.

In response to changes in global trade policies and tariff pressures, the bicycle manufacturing contractor Mingxi Co., Ltd. (6804) is adjusting its production sites and shipping strategies. The company plans to establish a factory in Vietnam by mid-2025 and begin mass production by the end of 2026 to supply the European market. This move aims to reduce dependence on high-tariff markets, increase operational flexibility, and restructure the global supply chain layout.

Key Updates

04/29 17:30

The U.S. consumer confidence index dropped to its lowest point in five years, mainly due to worries about tariff policies.

The World Large Enterprises Federation reported on April 29, 2025, that the United States Consumer Confidence Index fell to 86.0 in April, the lowest since May 2020, marking the fifth consecutive month of decline. Consumers are pessimistic about the future economy, employment, and income, especially worried about the high tariffs on Chinese goods, which has become a key factor in the drop in confidence. The tariffs have caused supply chain strains and increased prices, further impacting consumer spending plans.

04/29 15:02

U.S. Treasury Secretary Yellen: The U.S.-India trade agreement is nearing completion, and negotiations with South Korea and Japan are going well.

On April 29, 2025, U.S. Treasury Secretary Scott Bessant stated that significant progress has been made in trade negotiations between the United States and India, South Korea, and Japan. The agreement with India is nearing completion and could be one of the first agreements to be signed; the framework of the agreement with South Korea is in place, but it is influenced by the elections; talks with Japan have entered a critical phase, with the G7 summit possibly playing a key role. These negotiations are occurring in the context of President Trump's "reciprocal tariffs" policy, as Asian countries actively respond to tariff pressures.

04/29 15:02

U.S. President Donald Trump has announced a new car tariff policy set to take effect in 2025, aimed at reducing the tax burden on American car manufacturers.

On April 29, 2025, President Trump of the United States announced a new automotive tariff policy to reduce the tax burden on U.S. car manufacturers. The new policy exempts car manufacturers who have already paid the 25% import tariff on complete vehicles from paying additional tariffs on steel and aluminum materials, and allows for retroactive refunds for duplicate taxes. Regarding the component tariffs effective May 3, the government will reduce the rates and offer a compensation mechanism. This move prompted a rise in Asian automotive stock prices, and General Motors delayed its earnings report in response to the policy.

04/29 15:02

Delta Air Lines Temporarily Pauses Acceptance of New Airbus Models, Reroutes via Tokyo to Bypass U.S. Tariffs.

Delta Air Lines, in order to avoid the 10% import tariff imposed by the United States on new Airbus aircraft manufactured in Europe, has strategically rerouted the newly delivered A350-900 aircraft to Tokyo Narita Airport for international routes to avoid classification by U.S. customs as a "new import." Additionally, Delta has paused the acceptance of aircraft subject to tariffs and adjusted its delivery schedule. CEO Ed Bastian stated that if the tariffs cannot be avoided, Delta will halt aircraft acceptance. Delta has also chosen aircraft models produced in Canada and the United States to avoid tariffs, maintaining a balance between fleet expansion and cost control.

04/29 13:02

The U.S. goods trade deficit in March hit a record high of $162.0 billion, mainly due to a surge in imports.

The U.S. Department of Commerce's Census Bureau released data on April 29th, 2025, showing that the goods trade deficit in March reached a record high of $162.0 billion, an increase of $14.2 billion from February. The main reason was a surge in imports, as companies stocked up in advance to avoid potential tariffs, pushing the import value up to $342.7 billion. Exports increased to $180.8 billion, but the growth was not enough to match the increase in imports, resulting in a wider deficit. This situation reflects how trade is dragging on economic growth, with forecasts predicting a 0.4% annualized decline in GDP for the first quarter.

04/29 07:04

In response to shifts in trade dynamics, the bicycle contract manufacturing factory plans to build a new factory in Vietnam by 2025 to supply Europe.

In response to changes in global trade policies and tariff pressures, the bicycle manufacturing contractor Mingxi Co., Ltd. (6804) is adjusting its production sites and shipping strategies. The company plans to establish a factory in Vietnam by mid-2025 and begin mass production by the end of 2026 to supply the European market. This move aims to reduce dependence on high-tariff markets, increase operational flexibility, and restructure the global supply chain layout.

04/29 03:06

The supply chain is cooling down, from warehouses to ports, as the rush from the US-China tariff war subsides.

The surge in orders due to the U.S. imposing high tariffs on China has cooled off, and the trend of electronics manufacturers shipping early has vanished, resulting in decreased demand for sea and air transport between China and the U.S. Shipments of products such as laptops and iPhones have slowed down, and container orders at the Port of Los Angeles have plummeted. Chinese export companies are pivoting to emerging markets and adjusting their supply chain strategies. U.S. ports and the retail sector are feeling the impact, with import volumes projected to drop by 20%.

04/29 03:06

New US Tariff Policy Sparks Price Hikes in E-commerce and Consumer Goods: Prices of Amazon and Shein Products Soar, Major Companies like Procter & Gamble Announce Price Changes

Since the implementation of the new United States tariff policy on April 9, 2025, prices on platforms like Amazon and Shein have surged. Amazon has seen an average price increase of 29% for nearly a thousand products, while Shein's beauty and health products have seen a 51% price hike. UPPAbaby strollers have experienced a 33% price increase. Procter & Gamble, Unilever, and Nestlé have announced plans to further raise their product prices in the coming months. This wave of price hikes, driven by the tariff policy, is impacting the daily lives of American consumers.

04/28 23:01

Chinese battery manufacturers have been severely impacted by high tariffs, while South Korean companies are speeding up their entry into the U.S. and European markets.

Global demand for energy storage is increasing, and Chinese battery manufacturers like CATL are facing up to 173.4% tariff pressures in the US market, hindering their market layout. South Korean companies like LG Energy Solution and SK On are expanding with policy support, filling the market void. Although Chinese companies have a cost advantage, they need to pivot towards Europe and emerging markets. US and European policies are reshaping the supply chain, prompting companies to accelerate the localization of production and technological upgrades.

04/28 21:31

Economist from Apollo: Trump's High Tariff Policy Predicted to Cause U.S. Economic Recession by Summer 2025

In the spring of 2025, the U.S. economy faced a supply chain crisis due to the Trump administration in the United States increasing tariffs on Chinese imports to 145%. Container volumes at ports plummeted, retailers such as Walmart warned of product shortages, the demand for trucking services collapsed, and manufacturers such as Mack Trucks laid off workers. Torsten Slok, chief economist at Apollo Global Management, predicted that these factors would lead to a U.S. economic recession in the summer of 2025, showing signs of stagflation.

Changes in the Global Trade Environment Drive Strategic Transformation

Since 2025, the global trade situation has remained volatile, particularly due to the high tariff policies of the United States targeting China and other regions, which have significantly impacted export-oriented manufacturing industries. According to a report by MoneyDJ, Mingxi pointed out that in response to the uncertainty of tariff policies, the company has initiated multiple measures aimed at reducing potential cost pressures and market risks.

For short-term strategies, Mingxi focuses on adjusting its shipment structure, prioritizing the production of higher-margin or customized products to improve resource utilization efficiency. Additionally, the company coordinates with supply chain partners to flexibly adjust component procurement locations, thereby reducing the impact of geopolitical fluctuations on costs.

Adjustment of Export Models and Third-Country Warehousing Layout

To further enhance export flexibility, Mingxi is negotiating with major clients on delivery locations and shipping models, and is actively setting up third-country transit warehousing. This strategy allows the company to flexibly adjust export flows when facing high tariffs in specific markets, reducing dependence on a single market.

Such transit warehousing setups have become a common practice among manufacturers in recent years to cope with trade barriers. By establishing logistics nodes in regions with lower tariffs or covered by trade agreements, companies can effectively avoid the cost pressures of direct exports to high-tariff markets.

Vietnam New Factory Plan: A Key to Mid- and Long-Term Supply Chain Restructuring

In terms of mid- and long-term strategies, Mingxi has planned to establish a new factory in Vietnam. According to the company's announcement, the new factory is expected to begin construction in mid-2025 and complete mass production by the end of 2026. This factory will become an important hub in Mingxi's global production system, primarily responsible for meeting the growth demands of the European market.

Vietnam has become a popular location for manufacturers to relocate production capacity due to its free trade agreement (EVFTA) with the European Union. This agreement offers tariff advantages for Vietnamese exports to Europe, offering a significant cost advantage for export-oriented companies. Mingxi's decision to choose Vietnam as the site for its new factory demonstrates its focus on the long-term demands of the European market and reflects the company's proactive response to global supply chain restructuring trends.

Current Operations and Market Response

Although overall revenue in the first quarter of 2025 still declined compared to the same period last year, Mingxi stated that as inventory adjustments are gradually completed, March has already shown year-on-year double-digit growth. The company remains cautiously optimistic about the second quarter's operational performance and will continue to monitor changes in market demand and policy trends.

Amid ongoing global supply chain restructuring, Mingxi's strategic adjustments and diversified production sites have become core means of maintaining competitiveness and reducing risks. The launch of the new factory in Vietnam will further strengthen its supply capability in the European market and provide room for adjustment in response to potential future trade policy changes.

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