STORY: The U.S. and Taiwan clinched a trade deal on Thursday that cuts tariffs on many of the tech powerhouse’s exports.:: TSMCUnder the deal, Taiwanese chipmakers like TSMC which are expanding U.S. production will be charged a lower tariff on semiconductors or related equipment that they ship to the country. They will also be allowed to import some duty-free.Broad tariffs that apply to most other Taiwanese exports to the U.S. will fall from 20% to 15%.The U.S. Commerce Department said generic pharmaceuticals, aircraft components and “unavailable natural resources” would face a 0% tariff.Taiwan said the U.S. also promised that it would be treated no worse than anyone else should chip tariffs be increased later. In exchange, Taiwanese companies will invest $250 billion in semiconductors, energy and artificial intelligence in the U.S.That includes $100 billion already committed by TSMC in 2025, with more to come, according to Commerce Secretary Howard Lutnick.The Trump administration said Taiwan would also guarantee an additional $250 billion in credit to facilitate further investment.:: Taipei Economic and Cultural Representative Office in the United StatesAt a press conference, Vice Premier Cheng Li-chiun said Taiwan aimed to be a strategic AI partner for the U.S. “In this round of negotiations, we also promoted two‑way high‑tech investment between Taiwan and the United States. We hope that in the future both sides can become close strategic partners in AI. So, aside from the previously mentioned Taiwan model for expanding investment in the U.S., the U.S. side also committed — through this investment MOU — to establishing a mechanism for two‑way investment to expand investment in Taiwan.”The deal deepens the Trump administration’s ties with Taipei.It comes at a critical time as China ratchets up pressure on the island, which it views as a renegade province, and while Washington works to avoid an all-out trade war with Beijing.Shares in TSMC rose 3% to record highs on Friday (January 16), further boosted by forecast-smashing earnings the day before.Read More
US, Taiwan strike deal on tech tariffs, risking China’s ire
