Taiwan's Trade Representative Jen-ni Jenny confirmed that ongoing Taiwan-US trade negotiations have reached a critical point, with the US explicitly pressing for "full market access" for American-made vehicles and advocating that Taiwan adopt a "zero tariff" policy. This development, intended to establish parity in the Taiwan-US trade relationship, has sparked unease within Taiwan's domestic automotive sector about its future viability.

As 2026 begins, demand for fan motors remains strong. On top of continued cooling needs driven by cloud servers, new fan upgrade and increased usage requirements are emerging across the edge computing segment. AI PCs are driving more dual-fan designs, while automotive and industrial control sectors are also expanding their fan usage. The motor driver IC opportunities behind these trends are expected to become a major development focus for many Taiwanese analog chip makers in 2026. Weltrend Semiconductor, Global Mixed-mode Technology (GMT), and Anpec Electronics are all expected to see stable support for their operations this year.

The North American automotive landscape is cloaked in strategic uncertainty. In a move that has captured international attention, Canada recently announced a dramatic, one-time reduction of tariffs on Chinese electric vehicles to 6.1%—a full 100% cut—while setting an initial import cap of 49,000 vehicles per year, gradually rising to 70,000 over five years.

European car manufacturers are confronting a complex geopolitical and economic dilemma that threatens their global competitiveness. Increasing tariffs and unpredictable policies in the US, coupled with aggressive competition from emerging domestic Chinese automakers, are squeezing European firms in their two largest markets. This dual pressure is forcing automakers to seek new growth regions, notably in South America, but political obstacles within Europe risk delaying critical trade agreements.

As the automotive sector pivots toward autonomous driving technologies, Taiwan's optics industry is rapidly evolving from a consumer electronics supplier into a critical player in advanced vehicle sensing systems. The transition reflects broader shifts in automotive design where cameras serve as fundamental sensory organs rather than peripheral accessories, driving new technical and commercial demands.

As Taiwan-US tariff negotiations near finalization, Mercedes-Benz Taiwan signals potential vehicle price reductions on US-made models, reflecting prospective customs duty cuts. The expected adjustments could impact about a quarter of the company's local sales, with broader implications for Taiwan's luxury car market.

As the initial results of trade negotiations between Taiwan and the US emerged in early 2026, a long-standing cloud over Taiwan's industrial sector appeared, at least briefly, to lift. The two sides agreed to set reciprocal tariffs at 15%, without stacking them on top of existing most-favored-nation rates, and Taiwan secured a key exemption under Section 232 of US trade law, which covers national security-related tariffs.

In 2025, Tesla's EV market share declined as Volkswagen's BEV sales surged in Europe, while Xiaomi aggressively expanded in China, challenging Tesla's position in that market. Tesla's global deliveries fell by 8.6%, ceding the top spot to BYD.

The EU's potential reversal of the 2035 ban on new gasoline and diesel vehicles is forcing European automakers to reconsider engine R&D. However, stringent emissions rules and growing Chinese technological capabilities complicate their ability to regain global competitiveness, according to Nikkei Automotive.

South Korean materials company Solum Advanced Materials has created a 10-micron ultrathin stainless steel foil using its proprietary Equi-Speed Asymmetric Rolling (ESAR) technology. The foil is intended as an anode current collector in all-solid-state batteries and is undergoing sample evaluations with global battery and automotive manufacturers.