By AP with Euronews
Published on
16/01/2026 – 12:11 GMT+1
Taiwan’s prime minister on Friday hailed a new trade deal with the United States as the “best tariff deal” enjoyed by countries with trade surpluses with Washington, an accord Beijing slammed.
The agreement reduces US tariffs on Taiwanese goods to 15% in exchange for $250bn (€215.3bn) in new US tech-industry investments.
It is comparable to deals the EU and Japan reached after US President Donald Trump proposed sweeping tariffs on many of Washington’s trading partners.
“Taiwan has successfully obtained 15% in tariffs with no added fees,” said Taiwan Premier Cho Jung-tai.
“For the time being, we obtained the best tariff deal enjoyed by the countries with trade surplus with the US,” Cho explained. “This also shows that the US sees Taiwan as an important strategic partner.”
Trump initially set the tariff on Taiwanese goods at 32%, but later reduced it to 20%.
China claims that independently governed Taiwan is its territory. A Foreign Ministry spokesperson in Beijing slammed the agreement when asked at a routine news briefing.
“China always firmly opposes countries having diplomatic relations with China and China’s Taiwan region signing any agreement that carries sovereign connotations and an official nature with China’s Taiwan region,” said Guo Jiakun.
The US Department of Commerce said in a statement that the “historic trade deal” with Taiwan would establish an economic partnership to create several world-class US-based industrial parks to help increase domestic manufacturing and “drive a massive reshoring of America’s semiconductor sector”.
Cho said Taiwan had secured 15% tariffs with no additional fees for the automotive and wood furniture industries, and no tariffs for some components used in the aerospace industry.
‘Timing is interesting,’ former US trade official says
The agreement must be ratified by Taiwan’s parliament, where opposition lawmakers have expressed concern about the potential impact on the island’s domestic semiconductor industry.
It coincided with an announcement by Taiwan-based TSMC, the world’s largest computer chipmaker, that it plans to increase its capital spending by up to 40% this year. It reported a 35% increase in net profit for the latest quarter, driven by the artificial intelligence boom.
TSMC has pledged around $165bn (€142bn) in US investments and said it is accelerating construction of new plants in Arizona, aiming to create a fabrication plant cluster and meet strong client demand.
The Commerce Department said that Taiwanese semiconductor producers that invest in the US will also get favourable tariff treatment, including exemptions.
Ryan Majerus, a former trade official in the Trump and former US President Joe Biden administrations, said the agreement’s “timing is interesting.”
The Supreme Court has yet to rule on the legality of Trump’s most sweeping tariffs, which he has used to pressure concessions from other US trading partners. The justices could strike down the tariffs as early as this month.
But Taipei, facing ongoing threats from Beijing, was eager to reach a deal and strengthen relations with Washington anyway. “Wanting to solidify things with the US probably played a big role here,” said Majerus, now a partner at the King & Spalding law firm.