Taiwan's strategy amid trade wars

In the context of rising global trade tensions, the relationship between the Taiwanese government and leading domestic manufacturers, such as Foxconn, is of critical importance. Recent changes in U.S. trade policy initiated by President Donald Trump have raised import tariffs on goods from Mexico and Canada to 25%, significantly affecting the business strategies of companies focused on the U.S. market. In response, the Taiwanese government is prepared to help domestic manufacturers mitigate the consequences of introducing higher tariffs on products exported from Mexico.

Recognizing the potential negative impact of tariff increases, the Taiwanese government is taking steps to support domestic manufacturers, many of which are actively expanding their operations into Mexico. Mexico has long been an attractive location for Taiwanese companies due to its proximity to the U.S. border and more favorable economic conditions. This allows them to effectively build a business model focused on selling products to the U.S. market. Since 1999, the number of Taiwanese companies in Mexico have created approximately 70,000 jobs, and this year, they were expected to invest $4 billion in the Mexican economy. Anticipating the promised increase in tariffs on Mexican products, Taiwanese companies announced their readiness to expand their presence in the country in November, immediately after Trump's election victory.

In response to new tariff barriers, the Taiwanese authorities have pledged support to Foxconn and other key enterprises. Their assistance includes financial aid, business strategy consulting, and guidance on alternative routes and markets. Such support is necessary to mitigate the effects of trade restrictions and ensure the sustainability of Taiwan's economy.

In light of the growing geopolitical tensions between Taiwan and China, the Taiwanese government has also decided to ban DeepSeek technology among government employees and companies of strategic importance. This decision is driven by national security concerns about potential espionage or cyberattacks from China.

Similar restrictions have been implemented globally. In Italy, the AI ​​platform DeepSeek, which recently has gained popularity, has already been banned. At the same time, the U.K. authorities have issued warnings to their citizens and business representatives, and the U.S. Department of Defense has prohibited employees from using DeepSeek. A similar situation occurred at the dawn of ChatGPT's growing popularity when a Samsung employee used confidential corporate data to develop a chatbot, leading to a company-wide ban on such actions.

Such measures demonstrate the wariness of the Taiwanese authority's desire to protect sensitive data and critical industries from external threats. The ban on DeepSeek indicates increased attention to security issues and the need for stricter oversight when adopting foreign technologies. 

In addition, shifts in U.S. trade policy have had a significant impact on the cryptocurrency market. According to the economic calendar, key events such as tariff hikes and trade negotiations have triggered uncertainty and instability in digital assets. The introduction of 25% tariffs on imports from Mexico and Canada, and 10% duties on goods from China, has triggered uncertainty and instability. As a result, Bitcoin and other cryptocurrencies have experienced a significant decline before stabilizing near all-time highs (ATH).

This volatility was caused by the trade war, as investors, concerned about rising trade barriers and possible deterioration of the global economic situation, began withdrawing funds from crypto assets in favor of more stable instruments. Despite attempts by regulators and analysts to stabilize the market, ongoing uncertainty continues to shape cryptocurrency trends.

The relationship between the Taiwanese authorities and Foxconn illustrates the complexities of today's global economy and geopolitical changes. Support for domestic manufacturers in the face of new trade barriers, measures to ensure information security, and the impact of the trade war on the cryptocurrency market demonstrate how interconnected various aspects of the modern economy are. In the face of uncertainty, Taiwan is actively adapting to new challenges to maintain its competitive position in the global market and ensure sustainable development of the national economy.