TAIPEI: Taiwan’s leading bicycle manufacturer Giant announced on Thursday it will challenge a United States customs decision blocking its products over alleged forced labour.
The US Customs and Border Protection issued a Withhold Release Order against the Taiwanese company effective immediately on Wednesday.
The agency stated that “the order was issued due to violations of US law prohibiting goods made with forced labour from entering the United States.”
It further alleged that “Giant profited by imposing such abuse, resulting in goods produced below market value and undercutting American businesses by millions of dollars in unjustly earned profits.”
Giant confirmed it would file a petition seeking revocation of the order and explain it had taken “appropriate measures.”
The company declared that “Giant Group is firmly committed to upholding human rights and labour protections,“ highlighting actions like fully covering recruitment and government fees for new migrant hires and upgrading employee housing.
It also stated it had implemented internal supervision mechanisms and third-party audits, and “continues to conduct due diligence to ensure compliance with international standards.”
Giant’s shares fell nearly 9% at one point on Thursday following the announcement of the US order.
This development occurs while Taiwan struggles to finalise a tariff deal with the US after the Trump administration imposed a temporary 20% levy alarming the island’s manufacturers.
US President Donald Trump said this month he planned to impose a tariff on semiconductors “very shortly,“ a move potentially damaging to Taiwan’s economy as a global chip manufacturing powerhouse.
Taiwan’s economic ministry pledged to assist Giant in resolving any forced labour issues to get the US order lifted promptly.
It affirmed in a statement that “as a responsible member of the global supply chain, Taiwan has always attached great importance to improving labour conditions.” – AFP
