Taiwan-US Trade Deal Cuts Tariffs, Pledges $250B in Chip Investment
Taiwan-US Trade Deal Cuts Tariffs, Pledges $250B in Chip Investment
The U.S. and Taiwan sign a tariff-cutting pact, aiming to reshore chip manufacturing and spur $250 billion in Taiwanese investment in the U.S.
In Washington, a sweeping pact between the United States and Taiwan lowers tariffs on Taiwanese goods to 15% from 20%, part of a broader bid to strengthen high‑tech ties and accelerate the U.S. chip manufacturing push.
Under the agreement, sector-specific tariffs on auto parts, timber, lumber and wood products will also be capped at 15%, signaling a broader move to level the playing field for key components and materials.
Taiwanese chip and tech firms are pledged to invest at least $250 billion in the United States to build and expand capacity in advanced semiconductors and artificial intelligence applications, with credit guarantees of at least $250 billion to facilitate these investments.
Officials say the deal is designed to drive reshoring of the semiconductor sector, a goal underscored by hints that TSMC could expand its footprint in Arizona as part of the plan.
Taiwan’s vice-premier Cheng Li-chiun framed the agreement as a two-way win, signaling stronger two-way high‑tech investment and closer AI collaboration with the United States.
During a briefing, the commerce secretary, Howard Lutnick, noted that the package includes land purchases and that TSMC’s U.S. expansion ambitions illustrate the tangible scale of the commitment.
With the details still to be fleshed out, officials emphasize the package is intended to spur jobs and accelerate growth in the U.S. chip and AI ecosystems, reinforcing a two‑way strategic partnership.
