US reduces tarrifs on Taipei to 15% in exchange for investments in semiconductors
The agreement, the result of lengthy negotiations with the Trump administration, has been announced. Taiwan will receive the same treatment as Japan, South Korea and the European Union, but its companies are committed to building plants in the United States: TSMC is expected to open at least five factories. Beijing: ‘Taipei is like a turtle in a jar to us.’
Taipei (AsiaNews/Agencies) - The United States has agreed to reduce tariffs on Taiwanese goods from 20% to 15%, without combining them with existing rates. The agreement was confirmed in a statement by the Taipei executive.
The agreement, reached after months of negotiations, also grants semiconductors and related products the most favourable treatment under Section 232 of the US Trade Expansion Act. The agreement also includes commitments to expand cooperation in supply chain investments and deepen strategic collaboration between Taiwan and the United States in the field of artificial intelligence.
The 15% tariff rate is in line with those applied by the United States to goods from major trading partners such as Japan, South Korea and the European Union. Under the agreement, Taiwanese companies in the semiconductor, electronic manufacturing services, artificial intelligence and energy sectors have committed to investing US0 billion in the United States based on their own plans, according to the Taipei government.
At the same time, the Taiwanese executive has also agreed to provide up to US0 billion in credit guarantees for financial institutions to support corporate investment in the US market.
In recent days, the New York Times reported that TSMC, the Taiwanese company and global leader in semiconductor manufacturing, had committed to building at least five more factories in exchange for a possible reduction in tariffs on Taiwanese goods.
TSMC President and CEO C.C. Wei declined to confirm the news but said the company is “accelerating” the expansion of its production capacity in the United States to meet customer demand.
Meanwhile, yesterday the company announced that demand for its artificial intelligence microchips is exceeding all expectations and has led to a 35% jump in profits in the fourth quarter of 2025.
Thanks to the agreement with Washington, Taiwan is guaranteed favourable treatment from the United States for its suppliers of semiconductors and related products. This is despite Taiwan already recording the sixth largest trade surplus in the world with the US, 90% of which is generated by sales of semiconductors, information and communications products, and electronic components.
For its part, the US Department of Commerce has described the agreement as ‘a historic trade agreement that will bring about a massive return of the semiconductor industry to the United States’ and that ‘will strengthen American economic resilience, create well-paying jobs and bolster national security’.
Beyond the technology sector, the reduction of import duties to 15% should also help to make Taiwan's non-technology sectors more competitive, which will now be on a level playing field with Japan, South Korea and the European Union. T
aiwan has also obtained more favourable treatment for other items such as automotive components, wooden furniture and aeronautical components.
Asked this morning about the agreement between Washington and Taipei during the usual daily press conference, Chinese Foreign Ministry spokesman Guo Jiakun said that the People's Republic ‘always firmly opposes’ countries that have diplomatic relations with China negotiating and signing any agreement with the Chinese region of Taiwan that has implications for sovereignty and is of an official nature. Guo urged the United States to strictly adhere to the “one China” principle.
Even more threatening tones towards Taipei were used in another press conference by Defence Ministry spokesman Zhang Xiaogang, who responded to a question about whether China might follow the US example with Venezuela to legitimise the use of force against the island.
He stated: “For us, dealing with separatist forces is like catching a turtle in a jar, and all options to punish them remain on the table. The Taiwan issue is purely an internal affair of China,” the spokesman added. “How to resolve it is a matter that concerns only the Chinese people and does not allow interference from external forces”.
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