Overview
- The framework lowers reciprocal tariffs on Taiwan to 15 percent from 20 percent and sets zero duties on select goods including generic drugs, their ingredients, aircraft parts and some natural resources.
- Taiwan-based chip and technology firms are slated to invest at least $250 billion in US production with an additional $250 billion in credit guarantees reported for those projects.
- Taipei hailed the outcome as a “home run,” while opposition figures and industry observers cautioned that the commitments could weaken Taiwan’s semiconductor base.
- Beijing objected that the arrangement violates the one‑China principle, with Foreign Ministry spokesperson Guo Jiakun calling it unacceptable and the Taiwan Affairs Office labeling it economic exploitation.
- US Commerce Secretary Howard Lutnick said Washington aims to relocate about 40 percent of Taiwan’s semiconductor supply chain to the US, as TSMC highlights roughly $165 billion in pledged US investments.