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Taiwan’s Exports to Mexico Jump by Almost 500% Ahead of US Tariffs

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Publish date: Tue, 11 Feb 2025, 11:35 AM
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(Feb 10): Taiwan’s exports to Mexico surged by a record as tech companies moved production out of China, but the trade now faces uncertainty following US threats of higher tariffs on its neighbour.

Taiwanese exports to Mexico jumped by 479% in January from a year earlier to reach US$2.7 billion (RM11.98 billion), official data shows. This is mainly driven by shipments of graphic processing units, a key components of artificial intelligence (AI) servers.

The surge was largely due to supply chain shifts, Taipei’s Finance Ministry said in a statement on Friday, as companies like Hon Hai Precision Industry Co — also known as Foxconn — and Wistron Corp have been building factories in Mexico to assemble AI servers destined for the US.

The trade now seems at risk after President Donald Trump announced in late January that he would impose 25% tariffs on imports from Mexico and Canada. The decision was later delayed for 30 days after last-minute negotiations, but the threats have caused stock prices of Taiwanese tech companies to plunge.

Last month, the American president also announced plans to impose 100% tariffs on semiconductor chips from Taiwan. Economic Minister Kuo Jyh-huei said on Saturday that a group of officials will travel to the US to meet with Trump’s administration to try and stop the tariffs from being implemented.

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Source: TheEdge - 11 Feb 2025

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