Summary
Taiwan and the United States have come to a general agreement on a trade deal to lower US tariffs on goods from Taiwan. The agreement involves the Taiwan Semiconductor Manufacturing Company (TSMC) building more facilities in the US. The specific details of the tariff reduction have not been fully released.
Key Facts
- Taiwan and the US reached a general agreement on a trade pact to reduce US tariffs on Taiwanese exports.
- The negotiations aimed to reduce tariffs without adding new ones and to gain benefits under Section 232.
- President Trump lowered a 32% tariff on Taiwanese exports to 20% pending ongoing talks.
- Taiwan's tariff rate may decrease to 15% as part of this deal.
- TSMC, a major chip producer, will build at least four more plants in Arizona.
- TSMC plans to invest $165 billion in the US to expand its production capabilities.
- The US is interested in TSMC expanding outside Taiwan to ensure chip supply security amidst regional tensions with China.
