Taiwan is preparing to help its companies grapple with new and future tariffs imposed by the U.S.
On Monday, Taiwan’s Ministry of Economic Affairs said it will set up a consultation hotline to provide assistance to Taiwanese businesses that need help navigating the U.S.’s new tariff measures.
While Taiwan Semiconductor Manufacturing Co. (TSMC) or Foxconn might be the most prominent Taiwanese companies, the island is home to several other tech and manufacturing firms with global reach, like United Microelectronics and Delta Electronics. Several firms have operations in either mainland China or Mexico, locations both subject to new tariffs over the weekend.
Taiwan’s external trade development council, which has offices in the U.S., Mexico, Canada, Southeast Asia, and South Asia, will set up a dedicated team to provide immediate consultation services to affected companies, the economic ministry said in a statement.
The ministry added that it will help Taiwanese companies looking to move operations to markets like the U.S., India, or Southeast Asia.
Taiwanese companies have already made big investment commitments in the U.S.
TSMC is building up its manufacturing capacity in the state of Arizona. In October, the chipmaker suggested that yields in its plant in Phoenix were higher than those in comparable facilities in Taiwan.
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During President Donald Trump’s first term in office, Foxconn pledged a multibillion-dollar investment in Wisconsin; the promised plant largely failed to materialize. Foxconn also has EV production facilities in Ohio, which it bought from Lordstown Motors.
Taiwan’s economic ministry on Monday also said the Industrial Technology Research Institute will actively promote R&D and manufacturing cooperation between Taiwanese and U.S. Firms.
Trump’s Taiwan tariff threat
Over the weekend, Trump imposed a new 10% tariff on Chinese imports, and a 25% tariff on imports from Mexico and Canada. He’s also threatened tariffs on the European Union.
Asian markets slumped on Monday as investors grappled with how these new tariffs would disrupt global supply chains, as well as raise the possibility of even more tariffs.
Trump has consistently accused Taiwan’s chip industry of undercutting U.S. Manufacturing; he’s also suggested the island pay more for U.S. Protection. (Beijing considers the island to be part of China, and has not ruled out the use of force in the event Taiwan declares formal independence.)
Last week, Trump threatened to impose tariffs on Taiwan-manufactured chips, potentially as high as 100%.
Taiwan reported a trade surplus with the U.S. Of $64.8 billion last year, a record and an 83% increase from the year before.
Yet the Information Technology and Innovation Foundation, a U.S. Think tank, argues that a tariff on Taiwanese chips would likely backfire. The organization claims that such a measure will increase prices, hurt U.S. Tech firms, and damage relations with Taiwan, while also failing to drive chip and electronics manufacturing back to the U.S.
