Key insights
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1
US goal stated as shifting chip supply chain capacity to the United States: Howard Lutnick said the objective is to bring 40% of Taiwan’s entire chip supply chain and production to the United States and to make the US self-sufficient in semiconductor-building capacity.
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2
Tariff levels tied to manufacturing commitments: Lutnick said tariffs would likely be 100% if Taipei had not agreed to manufacture in the United States, and the Trump administration said future semiconductor duties would be more favorable for Taiwanese producers investing in the US.
Takeaways
The deal sets a 15% tariff rate on many Taiwanese goods and pairs it with large Taiwanese commitments to invest and expand advanced semiconductor and artificial intelligence capacity in the United States.
Topics
World & Politics International Affairs Technology & Innovation Semiconductors Trade & Tariffs