U.S. agrees tariff cut as Taiwan pledges $250 billion in U.S. chip investment

The United States announced a trade agreement with Taiwan that will lower U.S. tariffs on Taiwanese goods to 15 percent from 20 percent, while Taiwan has pledged $250 billion in semiconductor and technology manufacturing investment in the United States, the Commerce Department said.

Taiwan’s government said it would provide an additional $250 billion in credit guarantees to help smaller companies in the chip supply chain expand in the United States. Negotiators from Taiwan and the United States met more than a dozen times since the first round of tariffs was announced in April, with Taiwan’s team — led by Vice Premier Cheng Li-chiun and trade representative Yang Jen-ni — making six trips to Washington and holding other sessions online.

By value, officials said only a small portion of Taiwan’s exports were subject to the tariffs, including plastic, textile and agricultural products; Washington would waive tariffs on generic pharmaceuticals and their ingredients, aircraft components and some natural resources. The administration had already exempted semiconductors and many electronics from those tariffs, saying those sectors would be handled under Section 232 national security measures, and under the new deal Taiwanese firms that build or are building U.S.

semiconductor facilities may import a proportional amount of chips duty-free.

Key Topics

Business, Taiwan, Tsmc, Semiconductors, Executive Yuan