Treaty reduces US tariffs on Taiwanese goods to 15% in exchange for $250 billion in new investment in the US technology industry
The Prime Minister of Cho Jung-tai, praised this Friday (16) a new trade agreement with the as the “best tariff agreement” ever reached by countries with a surplus in relation to Washington. In Beijing, a Chinese representative criticized the understanding.
The deal reduces US tariffs on Taiwanese goods to 15% in exchange for $250 billion in new investment in the US technology industry. The arrangement is similar to the pacts signed with and Japan after President announce broad tariffs to trading partners.
“For now, we have obtained the best tariff agreement among countries with a trade surplus with the US,” Jung-tai said, adding that the understanding “shows that the US sees Taiwan as a strategic partner.” According to him, the 15% tariff will be applied without additional surcharges and equals the treatment given to Japan, South Korea and the EU. Initially, Trump had set the tariff at 32%, then reduced it to 20%.
China, which claims Taiwan as part of its territory, reacted. “China has always been firmly opposed to countries that maintain diplomatic relations with us signing agreements with the Taiwan region that have connotations of sovereignty,” said Foreign Ministry spokesman Guo Jiakun.
The US Department of Commerce said the agreement provides for the creation of industrial parks on American soil to boost domestic manufacturing, calling it “historic” for the semiconductor sector.
Jung-tai also said that sectors such as automotive and wooden furniture will have a 15% tariff, while some aerospace components will be exempt. The agreement still needs to be ratified by the Taiwanese Parliament, where there are concerns about impacts on the local chip industry.
The announcement comes at a time when TSMC, the world’s largest semiconductor manufacturer, plans to increase its investments and accelerate the construction of factories in Arizona, amid the advancement of artificial intelligence (AI).
*With Estadão Content
