On February 3, 2025, Taiwan will respond to recent tariff announcements by US President Donald Trump, which impose significant import duties on goods from China, Canada, and Mexico. Taiwan's Ministry of Economic Affairs has stated its readiness to assist Taiwanese companies considering relocating production to the United States.
Trump's decision includes a 25% tariff on imports from Mexico and Canada, with a 10% tariff on Chinese goods, effective from February 4. Economists warn that these measures could trigger a trade war, causing immediate fluctuations in the stock market.
Taiwan is a key player in the global technology sector, particularly in chip production, with several manufacturing facilities in Mexico and China. Following the tariff announcement, shares of Taiwanese firms with operations in Mexico experienced notable declines, including an 8.1% drop for Foxconn, a 9.8% decrease for Quanta, and a 6.7% fall for Inventec.
In response to these developments, Taiwan's government has issued a statement detailing the support available for companies affected by the tariffs. The Ministry will provide essential information to businesses looking to relocate, including potential investment states in the US and applicable laws. Additionally, it is prepared to assist in finding business partners.
Moreover, Taiwan aims to encourage its companies to gradually shift away from the Chinese market, particularly in light of increasing political and military tensions from China, which claims Taiwan as its territory. Taiwanese President Lai Ching-te stated that the government is ready to support businesses that choose to invest domestically rather than in China.