Donald Trump's newly imposed tariff of 25% on neighbouring countries has created a lot of talks, assumptions, and predictions. Earlier, Mexico and Canada gave a clear response regarding Donald Trump’s recent tariff imposition. Now Taiwan has companies in Mexico, which include Foxconn, Pegatron, Wistron, Quanta, Compal, and Inventec Corp. as major tech companies in Mexico. And now they want to position themselves and strengthen their identity and presence in the US market while avoiding costly tariffs.

Foxconn is maintaining its existence in the US market by some strategic approaches, like for electric vehicle contract manufacturing, creating a partnership with Fisker in the US, with a satellite-established joint venture that is Mobile Drive, which is engaged in ingenious smart cockpit solutions like payment service platforms, the integration of e-commerce applications, and AI and navigation systems, along with maintaining a strong association with ‘Big tech’ like Apple, Microsoft, and Intel. The joint venture strategy is to create a next-generation intelligent vehicle interface and technological integration. Foxconn manufactures products for Apple, Microsoft, Sony, Nintendo, Google, and Xiaomi and focuses on three technologies for their presence in the US market: artificial intelligence, semiconductors, and robotics.

Taiwan, the producer of semiconductors and electronic parts, is also vulnerable due to Trump's imposition of tariffs in the future on imported chips. Taiwan's economic minister, in a statement dealing with Trump's new tariff, said that it will monitor changes in trade, provide help and support, and maintain communication with affected countries. Investment will be redistributed, helping in finding local business partners and manufacturing strategies, providing guidance in local law and investments, and providing detailed information regarding firms wanting to relocate. Promotion of research and development and manufacturing cooperation between Taiwan and US companies will also be done by the government’s Industrial Technology Research Institute branches in North America.