AsianFin -- Taiwan's Foxconn said on Wednesday that it expects to be less affected by new tariffs proposed by U.S. President-elect Donald Trump, thanks to its extensive global manufacturing network.

Young Liu, chairman of the major contract manufacturer and key Apple supplier, explained after a forum in Taipei that any new tariffs would primarily affect its clients, rather than Foxconn directly, due to its contract manufacturing business model. "Clients may decide to move production to other locations, but given Foxconn's global footprint, we are well-positioned to mitigate the impact. As a result, the effect on us is likely to be smaller compared to our competitors," Liu said.

Trump announced on Monday that, on his first day in office, he would impose a 25% tariff on products from Mexico and Canada, as well as an additional 10% tariff on goods from China.

Foxconn, the world's largest contract electronics manufacturer, operates major manufacturing facilities in China, including a large iPhone assembly plant. However, the company has been expanding its investments in other regions, such as the U.S., Mexico, and Vietnam, as part of its efforts to diversify its supply chain. In Mexico, it is constructing a large facility to produce Nvidia’s GB200 superchips.