TAIPEI: Taiwan will support firms that intend to relocate to the United States, including helping them find partners on the ground, the economy ministry said on Monday (Feb 3), outlining assistance it will offer following US President Donald Trump’s new tariffs.
Trump’s orders for additional levies of 25 per cent on imports from Mexico and most goods from Canada, as well as 10 per cent on goods from China, were light on detail. But they kick in on Tuesday and have jolted markets as investors feared a broader trade war could severely hurt global growth.
Taiwan, whose companies are key producers of tech products like semiconductors and electronics parts, is vulnerable given that many have factories in both Mexico and China and because Trump has also threatened future tariffs on imported chips.
Taiwan’s economy ministry, in a statement detailing measures to help companies impacted by the new US tariffs, said it will provide information for firms wanted to relocate, such as possible US states to invest in, local laws and assistance in finding partners.
The government’s Industrial Technology Research Institute branches in North America will also actively promote research and development and manufacturing cooperation between Taiwanese and US companies, it added.
The ministry said it will continue to pay close attention to changes in international trade and maintain communication with companies to provide them with “the most timely support and assistance to ensure that they find the best strategies to cope with the changes”.
Shares in Taiwanese tech companies with factories in Mexico fell heavily on Monday, with Foxconn down 8 per cent, Quanta down around 10 per cent and Inventec 2356.TW off 8 per cent. Taiwan’s benchmark index was down around 4 per cent. Financial markets in Taiwan re-opened on Monday after the week-long Lunar New Year holiday.
https://www.channelnewsasia.com/east-asia/taiwan-help-companies-relocate-us-following-trump-tariffs-4912481
