The United States and Taiwan have signed a trade agreement cutting most US tariffs on Taiwanese goods to 15 per cent, in exchange for $250bn in Taiwanese semiconductor investment aimed at strengthening US supply chains.
Under the deal, the Donald Trump administration aligns Taiwan’s tariff rate with Japan and South Korea, while waiving levies on generic medicines, aerospace parts, and select natural resources.
Key developments
• $250bn pledged by Taiwanese chip and technology firms, backed by government credit guarantees
• Tariff-free quotas for semiconductor imports linked to US manufacturing investment
• Protection for Taiwan’s chip sector following earlier threats of 100 per cent semiconductor tariffs
• Parliamentary approval in Taipei required for implementation
The agreement centres on Taiwan Semiconductor Manufacturing Co, the world’s leading advanced chip producer, which is expanding US capacity while maintaining core production in Taiwan.
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