Thu, 15 Jan 2026

Thu, 15 Jan 2026 US to cut tariffs on Taiwanese goods after investment pledge

Commerce Secretary Howard Lutnick said the deal would help boost semiconductor production in the US.
The US has agreed to lower its tariffs on Taiwanese goods from 20% to 15%. In exchange, Taiwan's semiconductor companies will invest at least $250 billion in the US to boost domestic production of semiconductors. Taiwanese companies, including TSMC, have committed to new investments worth hundreds of billions of dollars. The deal also provides exemptions from tariffs for Taiwanese companies investing in the US. The agreement aims to increase US self-sufficiency in semiconductor chip production, which has been a priority since the Covid-19 pandemic exposed supply chain risks. As part of the deal, the US government will provide financing worth $250 billion to support Taiwanese firms. TSMC is expected to expand its investments in the US and develop the local supply chain. The agreement was reached after years of negotiations between the two countries. The previous 20% tariff rate was set by the Trump administration, but it has been criticized for being an overreach of presidential power. The new 15% tariff rate matches those charged on goods from key trade partners such as Japan, South Korea, and the European Union.
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