NEW YORK, February 3. /TASS/. Taiwan’s government pledged to help companies with Mexico operations such as iPhone maker Foxconn shift production lines and investment to deal with higher US tariffs, Bloomberg reported citing sources.

Moreover, the island’s administration will help firms deal with potential supply disruptions, after US President Donald Trump imposed across-the-board tariffs of 25% on imports from Canada, China, and Mexico.

Trump announced earlier that the US would impose tariffs on imports of semiconductors and pharmaceuticals, adding that Taiwan has about 98% of the chip business, and that he wants them to come back to the US. Many in Taiwan express concern over possible consequences for the economy due to high tariffs on chips produced on the island.

On February 2, US President imposed a 25% tariff on imports from Mexico and Canada (10% on Canadian energy), and a 10% additional tariff on China. The measures will come into force on February 4.

Taiwan has been governed by its local administration since 1949 when the remaining Kuomintang forces led by Chiang Kai-shek (1887-1975) fled to the island after being defeated in China’s civil war. However, Beijing considers the island to be one of its provinces. Washington severed diplomatic relations with Taiwan in 1979 and established ties with China.