MOEA pledges to help Taiwanese firms in Mexico amid U.S. tariff hike

Taipei, Feb. 3 (CNA) Taiwan's Ministry of Economic Affairs (MOEA) said Sunday it will help Taiwanese companies in Mexico to deal with the potential impact of the 25 percent tariffs imposed by the United States on the neighboring country.

The MOEA made the promise after U.S. President Donald Trump on Saturday signed executive orders imposing tariffs on the U.S.' three largest trading partners, namely Mexico, Canada and China, with effect from Tuesday.

Also read: Trump's tariffs on Taiwan's chips likely to backfire: analysts

Goods imported from Canada and Mexico will be subject to a 25 percent tariff, except for Canadian energy products, which will face a 10 percent tariff. Meanwhile, the tariffs on imports from China will be hiked by 10 percent, according to Trump's executive orders.

In a press statement issued Sunday, Taiwan's MOEA said it was closely watching the U.S. tariff policy and will assist Taiwanese companies in Mexico to potentially "adjust their production lines and/or investment distributions accordingly."

The ministry did not give any further details of its planned assistance in that regard.

Currently, more than 300 Taiwanese companies have factories in Mexico, including many of the biggest names in the Electronic Manufacturing Services, such as manufacturing giant Hon Hai Precision Industry Co., known globally as Foxconn, and contract electronics makers Pegatron, Wistron, Quanta, Compal and Inventec Corp., according to Taiwan government data.

Other Taiwanese businesses that have large investments in Mexico include some in the engineering industry and auto parts, and textile manufacturers, the data shows.

The MOEA said it also intends to help Taiwanese companies that are investing in the U.S. to solicit more support from local governments there, to create a win-win business model for both Taiwan and U.S. supply chains, during annual investment campaigns such as 2025 SelectUSA.

SelectUSA is an American government program, led by the Department of Commerce (DOC), which focuses on facilitating job-creating business investments in the U.S., according to the department's website.

In Sunday's statement, the MOEA also commented on Trump's reported plan to raise tariffs on chips manufactured in Taiwan, saying that bilateral cooperation in high-tech areas has always been mutually beneficial for Taipei and Washington.

Taiwan and the U.S. are reliable and trustworthy supply partners in both democracy and business, the MOEA said. "The U.S.-designed, Taiwan-foundry model has since created a win-win business model for both sides."

Taiwan will continue to communicate and work closely with the new Trump administration to make sure Taiwan and U.S. industries and national interests can develop in a mutually beneficial way, it added.

Speaking at a House Republican Issues Conference on Jan. 27 in Florida, Trump said his administration would soon impose "tariffs on foreign production of computer chips, semiconductors and pharmaceuticals to return production of these essential goods to America."

Taiwan has about 98 percent of the chip business, Trump said. "We want them to come back...they needed an incentive, and the incentive is going to be they're not going to want to pay a 25, 50 or even 100 percent tax."