TAIPEI (Reuters) -Taiwan will support companies that plan to relocate to the United States, including helping them find partners, the economy ministry said on Monday, outlining assistance it will offer after U.S. President Donald Trump’s new tariffs.
Trump’s orders for additional levies of 25% on imports from Mexico and most goods from Canada, as well as 10% 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 such as semiconductors and electronics parts, is vulnerable given that many have factories in both Mexico and China and because Trump has also threatened tariffs on imported chips.
Taiwan’s economy ministry, in a statement detailing measures to help companies affected by the new U.S. tariffs, said it will provide information for firms that want to relocate, such as possible U.S. 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 U.S. 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”.
Taiwan’s marquee investment in the United States is $65 billion from chipmaker TSMC to build factories in Arizona, a plan begun in 2020 under Trump’s first administration.
Shares in Taiwanese tech companies with factories in Mexico fell heavily on Monday, with Foxconn closing down 8.1%, Quanta down 9.8% and Inventec off 6.7%.
Taiwan’s benchmark index ended down 3.5%. Financial markets in Taiwan re-opened on Monday after the week-long Lunar New Year holiday.
Taiwan is also eager to ensure its companies continue moving away from China, which has ramped up military and political threats to assert its sovereignty claims over the island.
Taiwan President Lai Ching-te, speaking in Taipei on Monday to Taiwanese companies who have invested in China, said the government will maintain friendly policies to support those firms who wish to invest instead in Taiwan.
Interest rates will be kept under control to help manage company costs, as will the foreign exchange rate and inflation, he added.
(Reporting by Ben Blanchard; Editing by Kim Coghill, Shri Navaratnam and Gerry Doyle)
Comments