07 11 2024

Taiwan will support companies in relocating production from China in anticipation of significant impacts from tariffs that incoming U.S. President Donald Trump has pledged to impose, Economy Minister Kuo Jyh-huei stated on Thursday.

Trump, set to take office in January, has proposed a 60% tariff on U.S. imports of Chinese goods, posing substantial growth risks for the world’s second-largest economy.

Over the past four decades, Taiwanese firms have invested billions in China, benefiting from lower costs. However, wary of Beijing’s pressure regarding sovereignty claims, Taiwan’s government has encouraged firms to consider alternative locations.

In parliament, Kuo noted that Trump’s tariffs on China could have a “quite large” impact on Taiwanese companies operating there.

“We will as soon as possible come up with help for Taiwan companies to move their production bases,” he said, without giving details.