TAIPEI (Taiwan News) – Economics Minister Kuo Jyh-huei (郭智輝) said on Thursday (Nov. 7) that Taiwan will help firms move production from China because of tariff threats from incoming US President Donald Trump. 

Trump, set to take office in January, has threatened to impose 60% tariffs on US imports of goods from China, reported Reuters. Kuo said Trump’s tariffs would impact any Taiwanese manufacturer operating in China. 

Kuo told the legislature, "We will as soon as possible come up with help for Taiwan companies to move their production bases.” 

Over the past 40 years, Taiwan’s companies, taking advantage of lower costs, have invested billions of dollars in China. However, the government has warned them of the dangers of conducting business in China and encouraged them to invest elsewhere. 

Lawmakers raised concerns with Kuo that Trump might cancel subsidies for Taiwan Semiconductor Manufacturing Co. (TSMC) under the CHIPS Act. The funding is vital to TSMC’s expansion plans in the US but most funds are unlikely to be distributed before President Joe Biden leaves office. 

Kuo responded with a contingency plan, including helping more companies in the supply chain move to the US.