Taiwan Strikes Deal with U.S. to Cut Tariffs

Taiwan has vowed to remain the world’s “most important” AI chipmaker after reaching a trade deal with the United States that reduces tariffs on its shipments and encourages Taiwanese investment in the U.S., Joy Chiang and Beiyi Seow reported for Agence France-Presse (AFP).

Under the deal, Washington will lower tariffs on Taiwanese goods to 15%, down from a 20% “reciprocal” rate meant to address U.S. trade deficits and practices deemed unfair.

Taiwan is a global leader in chip production—a critical component for the world economy—but the U.S. seeks to produce more technology domestically.

The agreement “will drive a massive reshoring of America’s semiconductor sector,” the U.S. Commerce Department said.

Under the deal, Washington will lower tariffs on Taiwanese goods to 15%, down from a 20% “reciprocal” rate meant to address U.S. trade deficits and practices deemed unfair.

Premier Cho Jung-tai praised negotiators for “delivering a well-executed home run” after months of discussions. “These results underscore that the progress achieved so far has been hard-won,” Cho said.