US–Taiwan deal to cut tariffs and expand Taiwanese investment in US semiconductors

The United States signed a deal with Taiwan to cut tariffs on Taiwanese goods to 15 percent and secure at least $250 billion in new Taiwanese chip and tech investment in the United States.

Washington will lower tariffs on Taiwanese goods to 15 percent from a 20 percent reciprocal rate, and cap sector-specific tariffs on Taiwanese auto parts and wood products at 15 percent. Taiwanese chip and tech businesses are set to make new direct investments totalling at least $250 billion in the United States, and Taiwan will provide credit guarantees of at least $250 billion to facilitate additional investment. Taiwan’s government said the new tariff will not stack on top of existing duties, and a Taiwanese machine tool executive said his company cannot absorb the tariff for US customers given single-digit profit margins. US officials also announced a 25 percent duty on certain semiconductors meant to be shipped abroad, described as a step allowing Nvidia to sell advanced AI chips to China.