Overview
- The agreement directs at least $250 billion from Taiwanese chipmakers into U.S. production and adds $250 billion in credit guarantees to strengthen factories and suppliers for advanced semiconductors.
- Reciprocal tariffs on covered Taiwanese products are set at 15%, and manufacturers that invest in the United States will receive preferential tariff treatment, according to the Commerce Department.
- Commerce Secretary Howard Lutnick said the goal is to bring 40% of Taiwan’s semiconductor supply chain to the United States to support national security and reduce reliance on distant suppliers.
- Washington will impose a 25% duty on semiconductors that transit the United States before re-export, a trade enforcement step following a USTR investigation led by Jamieson Greer.
- Taipei will support U.S. investment in Taiwan’s semiconductor, AI, and defense technologies, while China has stated it opposes the agreement as an infringement on its claimed sovereignty.