[News] Trump Risk Index: Mexico and Thailand Most Vulnerable, Taiwan Safer Than Japan and South Korea

---

---

The ongoing influence of U.S. President-elect Donald Trump’s tariff increase threat continues to ripple across the globe. The Washington-based nonprofit think tank, the Information Technology and Innovation Foundation (ITIF), has released a report of “Trump Risk Index,” ranking 39 U.S. allies by their level of potential risks under the tariff policy of the upcoming Trump administration.

The ITIF report points out that the country deemed most at risk is Mexico, while Thailand, the only Asian country in the top 10, ranks second. Taiwan ranks 31st, among the countries with relatively low risk.

ITIF used four indicators to assess the rankings: defense spending, trade balance, a composite of measure of anti-U.S. trade and technology policies, and the willingness to resist China’s techno-economic predation.

According to ITIF, Trump’s “America First” principle targets nations perceived to be free-riding on U.S. investments, exploiting the openness of the U.S. market to bolster their economies, or aligning with China for economic benefits rather than standing firmly with the U.S.

Among the top five most at-risk countries in ITIF’s report are Mexico, Thailand, Slovenia, Austria, and Canada. These countries share common characteristics: their defense spending as a percentage of GDP is below average, and all have trade deficits with the U.S., with Mexico and Thailand having particularly large deficits. ITIF points out that these countries tend to have avoided fully siding with the U.S. in opposing China’s growing power in military, diplomacy, and technology-driven economics.

Conversely, the five countries deemed safest and least at risk in the ITIF report are Lithuania, Estonia, Poland, Latvia, and Australia. Except for Australia, these nations allocate defense budgets above the average level, as ITIF notes.

In the ITIF report, among other Asian countries, the Philippines ranks 17th, Japan 25th, and South Korea 22nd—all higher-risk rankings compared to Taiwan at 31st.

Read more

• [News] Taiwanese Server ODMs Seek Production Capabilities Outside Mexico Amid Trump’s Tariff Threat
• [News] Japan, South Korea Reportedly Strive to Cut Dependence on China for Tech Materials