PULSE POINTS
WHAT HAPPENED: The United States and Taiwan reached a deal to lower tariffs on Taiwanese goods and boost Taiwanese semiconductor financing for U.S. operations.
WHO WAS INVOLVED: The Trump administration, Taiwanese semiconductor companies, and the U.S. Department of Commerce.
WHEN & WHERE: Announced on Thursday by the Department of Commerce.
IMPACT: The deal aims to strengthen U.S.-Taiwan economic ties and reduce reliance on China for semiconductor manufacturing.
IN FULL
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 on Thursday, emphasizing its potential to boost energy, artificial intelligence (AI), and innovation in the U.S.
The 15 percent tariff rate is lower than the 20 percent previously imposed under President Donald J. Trump’s 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 likely 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 move is intended to bolster the U.S. semiconductor industry and reduce dependence on Chinese manufacturing.
Notably, the Trump administration emphasized the strategic importance of semiconductor chips, describing them as critical to future innovation and global competition. Taiwan currently produces the majority of the world’s semiconductor chips, including the most advanced technologies.
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