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U.S. and Taiwan Seal Trade Deal Capping Tariffs at 15% With $250 Billion Investment Pledge

The pact ties tariff relief to a commitment designed to rebuild U.S. chip manufacturing.

Overview

  • The U.S. Department of Commerce confirmed a deal setting a 15% cap on tariffs for most Taiwanese goods.
  • Taiwan pledged at least $250 billion in new U.S. direct investment aimed at semiconductors and artificial intelligence.
  • Sector rules include a 15% limit for items such as auto parts and wood products, with zero tariffs for generics and certain raw materials.
  • Taipei described preferred treatment for semiconductors and related products, and Premier Cho Jung-tai called the agreement hard-won.
  • Talks began after President Trump imposed 32% tariffs, later reduced to 20%, and some Taiwanese firms warn a 15% rate still strains thin margins.