TAIPEI, Taiwan: In response to U.S. President Donald Trump's new tariffs, Taiwan's economy ministry announced it will support companies planning to relocate to the United States.

This assistance includes helping firms find partners and navigate local laws.

Trump's orders impose an additional 25 percent tariff on imports from Mexico and most goods from Canada, as well as 10 percent on Chinese goods. Although details are sparse, the tariffs took effect on February 4, rattling markets amid fears of a broader trade war that could harm global growth.

Taiwanese companies, major producers of tech products like semiconductors and electronics parts, are particularly vulnerable since many operate factories in both Mexico and China. Trump has also hinted at potential tariffs on imported chips, adding to concerns.

The economy ministry outlined several support measures, including providing information on potential U.S. investment locations and facilitating partnerships. Taiwan's Industrial Technology Research Institute branches in North America will actively promote R&D and manufacturing cooperation between Taiwanese and U.S. companies.

The ministry pledged to monitor international trade developments closely and communicate with affected companies to offer timely support and help them adapt their strategies to the changing landscape.

A standout example of Taiwanese investment in the U.S. is chipmaker TSMC's US$65 billion plan to build factories in Arizona, initiated during Trump's first term in 2020.

Taiwanese tech stocks with Mexican operations took a hit on Monday, with Foxconn dropping 8.1 percent, Quanta falling 9.8 percent, and Inventec sliding 6.7 percent. Taiwan's benchmark index ended down 3.5 percent as markets reopened after the Lunar New Year holiday.

Taiwan is also keen to ensure its companies reduce reliance on China amid escalating military and political pressures from Beijing, which claims sovereignty over the island.

Speaking in Taipei to Taiwanese companies invested in China, President Lai Ching-te emphasized the government's commitment to supporting those shifting their investments back to Taiwan. He assured that interest rates, foreign exchange rates, and inflation will be managed to help control company costs.