Foxconn Says Trump’s New Tariffs Will Not Impact The Firm Due To Global Manufacturing Footprint

Young Liu, Chairman, in a conversation with reporters said that the primary impact of the fresh tariffs fell on the firm’s clients as its business model was based on contract manufacturing

Earlier in the week, Donald Trump said that his government would impose an additional 10 per cent tax on products from China.

Source : Foxconn

Foxconn on Wednesday said that the firm expects to be protected from the impact of new tariffs from the new US President Donald Trump-led government. The company said that it estimates these tariffs to create an issue for its rivals much more due to the firm’s global manufacturing footprint.

Young Liu, Chairman, of the Taiwanese company in a conversation with reporters said that the primary impact of the fresh tariffs fell on the firm’s clients as its business model was based on contract manufacturing, reported Reuters.

Speaking after a forum in Taipei, the executive said, “Clients may decide to shift production locations, but looking at Foxconn’s global footprint, we are ahead. As a result, the impact on us is likely smaller compared to our competitors.”

Earlier in the week, Donald Trump said that on his first day in office, he would levy a 25 per cent tariff on all goods from Mexico and Canada. He added that his government would impose an additional 10 per cent tax on products from China.

Foxconn has large manufacturing facilities in China including a major iPhone assembly plant. However, the largest contract electronics maker in the world has been expanding its investments in other nations such as the US, Vietnam, and Mexico as part of a supply chain diversification effort. The firm is building a large manufacturing facility in Mexico to produce Nvidia’s GB200 superchips.

The executive said that the company would be able to share more details about the company’s US plans once Trump takes over the office officially in January. “After that, we will have a corresponding strategy in place. What you’re seeing now is a game between nations, not yet between companies. Whether it’s 25% or an additional 10%, the outcome is uncertain as they continue to negotiate. We are constantly adapting and refining our global strategy,” he noted.