US and Taiwan agree to 15% tariff cap and $500B chip investment deal
The US and Taiwan finalized a trade deal featuring a 15% tariff cap and $500B in semiconductor investment and credit guarantees for US operations.Summary
The United States and Taiwan have reportedly finalized a significant trade agreement to bolster economic ties and accelerate US-based semiconductor manufacturing. The deal, expected to be announced by the White House, reduces tariffs on Taiwanese imports from 20% to 15%, matching terms secured by Japan and South Korea. Crucially, Taiwan's technology sector committed $250 billion in direct investment to build advanced semiconductor, energy, and AI infrastructure in the US, supplemented by an additional $250 billion in credit guarantees to support the American supply chain. The agreement also provides tariff relief for specific sectors, including a 15% cap on auto parts and lumber, and zero tariffs on generic pharmaceuticals. Taiwanese chipmakers will receive tiered tariff relief for importing materials needed during US construction phases.
(Source：Crypto Briefing)