Key Takeaways
- The US and Taiwan have reportedly finalized a trade deal reducing tariffs on Taiwanese goods from 20% to 15%, aligning with Japan and South Korea.
- Taiwanese semiconductor firms will invest $250 billion directly into US operations and offer $250 billion in credit guarantees for supply chain expansion.
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The United States and Taiwan have reportedly reached a landmark trade agreement aimed at deepening economic ties and accelerating US-based semiconductor manufacturing.
According to a Bloomberg report, the White House was set to announce the deal on Thursday, which would lower tariffs on Taiwanese imports from 20% to 15% and unlock a $500 billion semiconductor financing package for US expansion.
As part of the agreement, Taiwan’s technology sector will commit $250 billion in direct investment to build out advanced semiconductor, energy, and AI infrastructure in the US. An additional $250 billion in credit guarantees will be made available to support continued investment in the American semiconductor supply chain.
The deal places Taiwan on equal footing with Japan and South Korea, both of which secured similar trade terms with the US last year. It also includes tariff relief for key sectors: a 15% cap on duties for auto parts, lumber, and wood products from Taiwan, and zero tariffs on generic pharmaceuticals produced on the island.
Taiwanese chipmakers will benefit from tiered tariff relief, importing up to 2.5 times their current capacity tariff-free during US construction. Once operational, the quota drops to 1.5 times, with reduced rates on excess shipments.
