TAIPEI, Feb 3 (Reuters) – Taiwan will offer support to companies planning to relocate to the United States in response to new tariffs imposed by U.S. President Donald Trump, including assistance in finding local partners, the economy ministry announced on Monday.
Trump’s decision to impose 25% tariffs on imports from Mexico and most goods from Canada, along with a 10% tariff on goods from China, is set to take effect on Tuesday. While the details of the tariffs remain vague, the move has unsettled markets, with investors concerned that a broader trade war could significantly disrupt global economic growth.
The ministry also stated that Taiwan’s Industrial Technology Research Institute branches in North America will actively facilitate research and development and manufacturing partnerships between Taiwanese and U.S. companies.
It emphasized that it would continue to closely monitor shifts in international trade and maintain communication with businesses to provide timely assistance, ensuring companies are able to adapt to these changes effectively.
One of Taiwan’s major investments in the U.S. is a $65 billion plan by chipmaker TSMC (2330.TW) to build factories in Arizona, a project that began in 2020 under Trump’s first administration.
Shares in Taiwanese tech companies with operations in Mexico were hit hard on Monday, with Foxconn (2317.TW) down 8.1%, Quanta (2382.TW) dropping 9.8%, and Inventec (2356.TW) falling 6.7%. Taiwan’s benchmark index (.TWII) ended the day 3.5% lower, following the return of financial markets after the week-long Lunar New Year holiday.
In addition to supporting companies shifting operations to the U.S., Taiwan is keen to encourage its businesses to distance themselves from China, which has increasingly ramped up military and political threats regarding its claims over the island.
Taiwan’s President Lai Ching-te addressed Taiwanese companies with investments in China on Monday, assuring them that the government would continue to implement favorable policies to support those wishing to invest in Taiwan. He also stated that interest rates, the foreign exchange rate, and inflation would be carefully managed to help control costs for businesses.
