On Wednesday, Taiwan's Foxconn released a statement indicating that the company anticipates the impact of the newly imposed tariffs by U.S. President-elect Donald Trump to be relatively less severe compared to its competitors. This assessment is attributed to Foxconn's extensive global manufacturing operations.
During a forum held in Taipei, Young Liu, the chairman of the contract manufacturer and a prominent supplier for Apple, addressed reporters and conveyed that the primary burden of any potential tariffs would likely be borne by Foxconn's clients, considering the company operates on a contract manufacturing basis.
"Clients might consider relocating their production, but with Foxconn's global presence, we are in a favorable position. Consequently, the impact on us is expected to be less significant than that on our rivals," he stated.
President-elect Trump indicated on Monday that he plans to implement a 25% tariff on all imports from Mexico and Canada on his first day in office, along with an additional 10% tariff on goods from China.
As the largest contract electronics manufacturer globally, Foxconn operates extensive manufacturing facilities in China, including a major assembly plant for iPhones. However, the company has been actively investing in other regions, such as the United States, Mexico, and Vietnam, as part of its strategy to diversify its supply chain. In Mexico, Foxconn is establishing a large facility to manufacture Nvidia’s GB200 AI servers.
Liu mentioned that further details regarding Foxconn's plans in the U.S. would be available after January 20, once Trump assumes office and his policies and tariff adjustments are clarified. "At that point, we will formulate an appropriate strategy," he added.
"What we are witnessing now is a geopolitical contest rather than a corporate one. The specifics of the tariffs, whether 25% or an additional 10%, remain uncertain as negotiations continue. We are continuously adapting and enhancing our global strategy."
During the 2017-2021 presidential term, Foxconn declared a $10 billion investment in Wisconsin, which was later significantly reduced. On Tuesday, Foxconn disclosed that a subsidiary had invested $33 million to secure land and factory structures in Harris County, Texas.
Foxconn will continue its investment in Mexico, as stated by Liu, acknowledging the shift towards regional manufacturing. He highlighted the significant opportunities presented by Mexico, with its population surpassing 100 million and its strategic proximity to the South American market.