Taiwan has announced measures to support companies considering relocation to the United States in response to tariffs imposed by the US President Donald Trump.
The initiative aims to help affected firms by providing information on investment opportunities in different US states, local regulations, and assistance in finding business partners.
The Ministry of Economic Affairs of Taiwan outlined these measures in a recent statement, as reported by Reuters.
The move comes as Taiwanese companies, particularly those in the technology sector, face challenges due to their production facilities in China and Mexico.
Trump’s tariff policies have targeted these regions, impacting industries such as semiconductors and electronic components.
The new tariffs, set at 25% on imports from Mexico and most Canadian goods, along with 10% on imports from China, have raised concerns over a potential escalation in trade disputes.
Taiwanese technology firms experienced a sharp decline in stock value following the tariff announcements. On Monday, shares of Foxconn fell by 8.1%, Quanta by 9.8%, and Inventec by 6.7%.
This market reaction highlights the vulnerability of Taiwanese manufacturers, many of whom operate production plants in countries affected by US trade restrictions.
To assist businesses, Taiwan’s economy ministry will provide information on investment-friendly US states, local regulations, and potential business partners.
Additionally, Taiwan’s Industrial Technology Research Institute branches in North America will actively promote research and development cooperation between Taiwanese and US companies.
The ministry affirmed that it will closely monitor international trade developments and maintain communication with affected businesses to ensure they receive timely support and guidance.
Taiwan’s Strategic Response
Taiwan is also focused on encouraging its companies to reduce dependence on China, particularly in light of Beijing’s increasing military and political pressure on the island.
Taiwan’s President, Lai Ching-te, addressed Taiwanese businesses that have invested in China, reaffirming that the government will maintain favourable policies for those opting to reinvest in Taiwan.
Measures such as managing interest rates, stabilising the foreign exchange rate, and controlling inflation will be implemented to support local businesses and mitigate financial pressures.
Background: US Tariffs and Trade Policies
The global markets have been preparing for further disruptions after Trump initiated a series of tariffs on imports from Canada, Mexico, and China. These measures marked a significant escalation in the ongoing trade disputes between the US and its key trading partners.
Trump signed three executive orders imposing additional duties on goods from these nations, a move that sparked immediate responses from Canadian and Mexican leaders, who vowed to implement retaliatory tariffs.
The trade war has had wide-ranging implications, affecting industries reliant on cross-border supply chains and prompting businesses to reassess their operational strategies.
Taiwan’s proactive approach in supporting its companies highlights the broader impact of US trade policies on global commerce. By facilitating relocations to the US, Taiwan seeks to ensure that its key industries can maintain stability and competitiveness in an evolving economic environment.
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U.S. Set to Impose Tariffs on Canada and Mexico from February 1
