In response to new tariffs imposed by US President Donald Trump, Taiwan has pledged to support its companies seeking to relocate operations to the United States. Trump's latest directive includes additional levies of 25 percent on imports from Mexico and most Canadian goods, alongside a 10 percent tariff on Chinese goods. The announcement, noted for its lack of detail, has prompted Taiwanese authorities to take proactive measures in assisting affected companies.
The Industrial Technology Research Institute, with branches in North America, will spearhead efforts to foster research and development collaborations between Taiwanese and US companies. This initiative aims to strengthen ties and facilitate manufacturing cooperation amidst the shifting trade landscape. Taiwan's economy ministry has also stepped in, offering guidance on potential US states for investment and assisting in finding local partners for firms aiming to relocate.
Financial markets in Taiwan felt the tremors from these developments as they reopened on Monday following the week-long Lunar New Year holiday. The benchmark index dipped approximately 4 percent, reflecting investor concerns over the far-reaching implications of the US tariffs. Shares in Taiwanese tech companies with manufacturing ties to Mexico took a notable hit. Foxconn saw a decline of 8 percent, Quanta dropped roughly 10 percent, and Inventec recorded an 8 percent decrease.
Taiwanese firms, many of which operate factories in Mexico and China, are caught in the crossfire of escalating trade tensions. Trump's administration has further threatened tariffs on imported chips, adding to the unease within the tech sector. As the new US tariffs come into effect on Tuesday, Taiwan's economy ministry has outlined its comprehensive plan to support affected businesses.
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