The United States Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) on bicycles, parts, and accessories manufactured by Taiwanese company Giant Manufacturing Co. on Wednesday local time.

CBP said the company was implicated in forced labor practices, including abuse of vulnerability, wage withholding, and excessive overtime.

In a statement Thursday, Giant said CBP had never visited its factories or contacted the company in recent years, and had issued the order “based merely on suspicion,” which it called “very unfair.” The company said it has filed a petition with CBP to have the order revoked, while also activating contingency plans.

Shares of Giant fell 8.95% in early trading Thursday, hitting their lowest level since 2010, despite the company stressing that the order only affects exports from Taiwan to the U.S., which account for about 4 to 5 percent of its revenue.

Giant said it has always upheld the core values of human rights and fair labor. It noted that in January 2025, it implemented a “zero recruitment fee policy,” under which the company pays all recruitment, brokerage, and government fees for newly hired foreign workers. Dormitory renovations were completed in late 2024 to provide safer and more comfortable living conditions.

Asked at a press briefing whether the case represented a new U.S. trade sanction tactic, Taiwan Institute of Economic Research Director Chang Chien-yi (張建一) said it appeared to be an individual case. He added that other companies should take the opportunity to review their own labor practices.