Summary
Taiwan and the United States have agreed on a trade deal where Taiwan will invest heavily in U.S. technology and energy sectors in return for reduced tariffs on its goods. Taiwan will invest at least $250 billion in U.S. semiconductor and tech industries while the U.S. will lower tariffs on Taiwanese imports from 20% to 15%.
Key Facts
- Taiwan will invest at least $250 billion in the United States' tech and energy sectors.
- The U.S. will reduce tariffs on imports of Taiwanese goods from 20% to 15%.
- The deal aims to improve U.S. access to Taiwan's semiconductor industry.
- Taiwan is a major global supplier of semiconductors, crucial for digital technology.
- President Trump previously set a 32% tariff on Taiwanese goods before lowering it to 20%.
- Taiwan will provide the same amount in credit guarantees for further U.S. semiconductor supply chain investments.
- By 2030, production capacity for advanced chips will be primarily centered in Taiwan, with some development in the U.S.
- China opposes the deal, urging the U.S. to recognize its stance on Taiwan's sovereignty.
