The government pledged to help companies with operations in Mexico, such as iPhone assembler Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn Technology Group (富士康科技集團), shift production lines and investment if needed to deal with higher US tariffs.
The Ministry of Economic Affairs yesterday announced measures to help local firms cope with the US tariff increases on Canada, Mexico, China and other potential areas.
The ministry said that it would establish an investment and trade service center in the US to help Taiwanese firms assess the investment environment in different US states, plan supply chain relocation strategies and connect with local partners.
Photo: Liao Chia-ning, Taipei Times
It said it would provide information and insights on target markets for Taiwanese companies that are mulling setting up factories in the US or relocating to Southeast Asia or India.
Additionally, the ministry said it would help businesses shift their attention to local demand, and provide legal guidance and assistance in finding local partners.
The ministry in a statement released on Sunday said that it would help firms deal with potential supply disruptions, after US President Donald Trump signed orders imposing tariffs of 25 percent on imports from neighboring Canada and Mexico.
Photo: Ann Wang, Reuters
Taiwanese firms such as Hon Hai are integrated into the global electronics production chain by assembling servers and gadgets for most of the world’s biggest tech companies. Many Taiwanese companies also manufacture artificial intelligence (AI) servers or make parts for those devices in Mexico to be closer to the US market.
Foxconn last year said it was building the world’s largest assembly site for servers powered by Nvidia Corp’s GB200 chips in Mexico.
Other Taiwanese partners of Nvidia include Inventec Corp (英業達), which also operates plants in Mexico.
Foxconn shares fell 9.2 percent in Taipei, while Inventec shares slumped 8.5 percent — their biggest daily decline since August last year.
“We might organize delegations to attend SelectUSA events and help Taiwanese companies secure support from the local government when they increase their investments in the US to create a win-win business model for US and Taiwanese supply chains,” the ministry said in a texted statement late on Sunday.
Taiwan’s investments in Mexico would have reached US$4 billion by the end of this year, according to the Taipei Economic and Cultural Office in Mexico.
Taiwanese companies have employed about 70,000 people in the country since 1999.
After Trump’s election in November last year, Foxconn and Taiwanese peer Quanta Computer Inc (廣達電腦) increased their investments in the US. Foxconn has secured land in California, Wisconsin and Texas, while Quanta’s board approved a US$230 million capital increase for its US unit.
More than 300 Taiwanese companies have factories in Mexico, government data show.
Additional reporting by Crystal Hsu
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01