{"id":698741,"date":"2026-01-16T00:14:09","date_gmt":"2026-01-16T00:14:09","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/698741\/"},"modified":"2026-01-16T00:14:09","modified_gmt":"2026-01-16T00:14:09","slug":"us-says-it-reached-deal-with-taiwan-to-lower-tariffs-and-boost-investments-trump-tariffs","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/698741\/","title":{"rendered":"US says it reached deal with Taiwan to lower tariffs and boost investments | Trump tariffs"},"content":{"rendered":"

The US said on Thursday that it had signed a deal with Taiwan<\/a> to reduce tariffs on goods from the democratic island, while increasing Taiwanese semiconductor and tech companies\u2019 investments in America.<\/p>\n

The agreement, the US commerce department said, \u201cwill drive a massive reshoring of America\u2019s semiconductor sector\u201d.<\/p>\n

Under the deal, Washington will lower tariffs on Taiwanese goods to 15% , down from a 20% \u201creciprocal\u201d rate meant to address US trade deficits and practices it deems unfair.<\/p>\n

Sector-specific tariffs on Taiwanese auto parts, timber, lumber and wood products will also be capped at 15%, the US commerce department said.<\/p>\n

Meanwhile, Taiwanese chip and tech businesses are set to make \u201cnew, direct investments totaling at least $250bn\u201d in the US to build and expand capacity in areas like advanced semiconductors and artificial intelligence.<\/p>\n

Taiwan will also provide \u201ccredit guarantees of at least $250bn to facilitate additional investment by Taiwanese enterprises\u201d, into the American semiconductor supply chain, the commerce department added.<\/p>\n

The department\u2019s announcement did not mention names, but the deal has key implications for Taiwanese chipmaking titan TSMC, the world\u2019s biggest contract maker of microchips used in everything from Apple phones to Nvidia\u2019s cutting-edge AI hardware.<\/p>\n

In an interview with CNBC, the commerce secretary, Howard Lutnick, said TSMC has bought land and could expand in Arizona as part of the deal.<\/p>\n

\u201cThey just bought hundreds of acres adjacent to their property. Now I\u2019m going to let them go through it with their board and give them time,\u201d he said.<\/p>\n

Taiwanese firms building new US chip operations will also be treated more favorably when it comes to future duties on semiconductors, the commerce department added.<\/p>\n

\u201cThe objective is to bring 40% of Taiwan\u2019s entire supply chain and production, to domestically bring it into America,\u201d Lutnick said.<\/p>\n

\u201cWe\u2019re going to bring it all over, so we become self-sufficient in the capacity of building semiconductors,\u201d he added.<\/p>\n

The agreement comes after months of negotiations.<\/p>\n

The Taiwanese president, Lai Ching-te, had pledged to boost investments in the United States and increase defense spending as his government tried to lower US duties, and avoid a toll on its semiconductor chip exports.<\/p>\n

Taiwan is a powerhouse in the manufacturing of semiconductor chips, which are the lifeblood of the global economy, as well as other electronics.<\/p>\n

But Trump previously accused Taiwan of stealing the US chip industry, and his administration had made clear it wants more of the critical technology made on American soil.<\/p>\n

Taiwan\u2019s trade surplus in goods with the US was about $74bn in 2024. More than half of its exports to US are information and communications technology products \u2013 including semiconductors.<\/p>\n","protected":false},"excerpt":{"rendered":"The US said on Thursday that it had signed a deal with Taiwan to reduce tariffs on goods…\n","protected":false},"author":2,"featured_media":698742,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[51,16,15],"class_list":{"0":"post-698741","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-uk","10":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115901894930259022","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/698741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=698741"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/698741\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/698742"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=698741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=698741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=698741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}