{"id":699135,"date":"2026-01-16T04:41:15","date_gmt":"2026-01-16T04:41:15","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/699135\/"},"modified":"2026-01-16T04:41:15","modified_gmt":"2026-01-16T04:41:15","slug":"us-taiwan-reach-250b-america-first-tariff-deal-over-semiconductors","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/699135\/","title":{"rendered":"US, Taiwan reach $250B ‘America First’ tariff deal over semiconductors"},"content":{"rendered":"\n

Gatestone Institute senior fellow Gordon Chang breaks down Taiwan’s $40B defense push and China’s talks with Russia and the U.S.-Japan relationship on ‘Mornings with Maria.’<\/p>\n

The United States and Taiwan on<\/a> Thursday reached a new trade agreement aimed at reshoring semiconductor manufacturing and strengthening U.S. supply chains, according to the Department of Commerce<\/a>.<\/p>\n

The deal commits Taiwanese semiconductor and technology companies to at least $250 billion in direct U.S. investment to advance “America First trade and investment” with an additional $250 billion in credit guarantees to support expansion across the industry’s supply chain in the U.S.<\/p>\n

American and Taiwanese officials say the agreement is designed to reverse decades of offshoring that cut America\u2019s share of global semiconductor fabrication from 37% in 1990 to under 10% in 2024.<\/p>\n

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\"Lutnick <\/p>\n

The Commerce Department, led by Secretary Howard Lutnick, announced a new trade agreement aimed at reshoring semiconductor manufacturing and strengthening U.S. supply chains. (Chris J. Ratcliffe\/Bloomberg via Getty Images)<\/p>\n

The framework also establishes U.S.-based industrial parks and sets tariff rules, capping U.S. tariffs on Taiwanese auto parts, timber, lumber and wood derivative goods at 15%.<\/p>\n

It also zeroes out reciprocal tariffs on select items like pharmaceuticals, aircraft components and unavailable natural resources.<\/p>\n

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\"Taiwan <\/p>\n

The Taiwan Semiconductor Manufacturing Co. (TSMC) is the world’s leading producer of semiconductors. (Mike Kai Chen\/Bloomberg via Getty Images)<\/p>\n

Future U.S. semiconductor tariffs will reward Taiwanese companies that build production in the United States, allowing duty-free imports tied directly to new U.S. manufacturing capacity<\/a>.<\/p>\n

Taiwanese firms that build new U.S. semiconductor capacity will be permitted to import up to 2.5 times that planned capacity without paying tariffs<\/a> during the construction period, while also receiving a lower preferential tariff rate for above-quota imports.<\/p>\n

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\"TSMC's <\/p>\n

The Taiwan Semiconductor Manufacturing Company (TSMC) has invested billions in a chip fabrication facility in Arizona. (Rebecca Noble\/Bloomberg via Getty Images)<\/p>\n

Additionally, Taiwanese companies that have completed new chip production projects in the U.S. will still be able to import 1.5 times their new U.S. production capacity without paying tariffs.<\/p>\n

The terms of the trade deal will see Taiwan facilitate U.S. investment into several key Taiwanese industries, including semiconductors, artificial intelligence (AI)<\/a>, defense technology, telecommunications and biotechnology industries.<\/p>\n

GET FOX BUSINESS ON THE GO BY CLICKING HERE<\/strong><\/a><\/p>\n

That investment is seen as a way to expand market access for U.S. companies, deepen the technological collaboration with Taiwan, and to strengthen U.S. leadership in critical and emerging industries.<\/p>\n","protected":false},"excerpt":{"rendered":"Gatestone Institute senior fellow Gordon Chang breaks down Taiwan’s $40B defense push and China’s talks with Russia and…\n","protected":false},"author":2,"featured_media":699136,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,1700,16,15],"class_list":{"0":"post-699135","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115902945026474261","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/699135","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=699135"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/699135\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/699136"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=699135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=699135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=699135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}