Taiwan is set to assist companies in relocating from China due to likely U.S. tariffs under President Trump. Economy Minister Kuo Jyh-huei indicated that the tariffs could adversely affect Taiwanese firms, prompting government support for transitioning operations. The discussion also encompassed concerns over potential subsidy cancellations for TSMC, which is heavily investing in the U.S.
Taiwan is poised to assist companies in relocating their production from China in response to the anticipated tariffs that incoming U.S. President Donald Trump may impose. Economy Minister Kuo Jyh-huei acknowledged that these tariffs, possibly reaching as high as 60%, could significantly impact Taiwanese firms operating in China. Consequently, Taiwan’s government aims to support these businesses in migrating their operations to other regions, particularly in light of ongoing pressures from Beijing regarding sovereignty claims. In a parliamentary session, Minister Kuo highlighted the substantial consequences the tariffs may have on Taiwanese enterprises, stating, “We will as soon as possible come up with help for Taiwan companies to move their production bases.” Furthermore, he addressed concerns from lawmakers regarding the potential cancellation of subsidies for TSMC, the leading global contract chipmaker, which is set to invest $65 billion in Arizona. Moreover, Kuo confirmed the existence of a contingency plan that facilitates additional companies in the supply chain to transition to the United States. TSMC’s commitment to expand its investments in the U.S. remains strong, even as it has not publicly commented on subsidy concerns. Taiwanese firm GlobalWafers, which is investing $4 billion in the U.S., also expressed confidence that the Chips and Science Act would persist despite the new administration, indicating, “We expect the CHIPS programme to be no different and run smoothly in the Trump administration.”
The potential imposition of tariffs by President-elect Donald Trump has prompted Taiwan to proactively assist its companies that have established production lines in China. Over the past forty years, Taiwanese firms have invested heavily in China, capitalizing on lower labor costs and production expenses. However, the shifting political landscape and increasing pressures from Beijing regarding Taiwan’s sovereignty have motivated the Taiwanese government to urge companies to diversify their investments beyond China, while also considering opportunities in the United States amid changing U.S. trade policies.
In summary, Taiwan is preparing to provide essential assistance to companies aiming to transition their production facilities out of China due to looming tariffs from the incoming U.S. administration. The economy minister has indicated substantial support measures to help affected Taiwanese firms, while also addressing concerns regarding U.S. subsidies for major investors like TSMC and GlobalWafers. The strategic moves underscore Taiwan’s commitment to ensuring the sustainability of its industries amidst a fluctuating geopolitical environment.
Original Source: www.investing.com
Leave a Reply