The United States published this Wednesday, 27th, the formal implementation of parts of the trade and investment agreement signed with Taiwan, detailing tariff reductions for products from the island and new incentives linked to the semiconductor chain and American industry.
The notice, which will be published on Thursday, 28, in Federal Registerthe official US gazette, makes official changes to tariffs applied to certain Taiwanese products, including auto parts, wood and derivatives. The text also eliminates derived tariffs on civil aeronautical components produced in Taiwan.
The measures are part of the memorandum of understanding (MOU) signed in January between representatives of the US and Taiwan, which will come into force immediately. The broader trade agreement signed in February, however, does not yet have a date for implementation.
The document details that Taiwanese companies are expected to make US$250 billion in new direct investments in the US focused on semiconductors, energy and artificial intelligence (AI). Additionally, Taiwan will provide credit guarantees to support up to $250 billion in corporate financing tied to American industrial expansion, totaling up to $500 billion in U.S. investment.
According to the American government, investors should help strengthen the domestic chip chain and reduce supply risks for sectors such as the automotive industry. The text also states that the increase in production capacity in the USA should increase domestic demand for steel, aluminum, copper and wood products.
Previous announcements had already indicated that tariffs on Taiwanese products would fall from 20% to 15%, in line with similar agreements reached by the US with Japan and South Korea. The new notice now establishes that the tariff changes will have retroactive effect for products imported since May 1, 2026.
Continues after advertising
The document also reinforces the economic rapprochement between Washington and Taipei in sectors considered strategic by the US, such as semiconductors, telecommunications, defense and biotechnology, amid American efforts to reduce dependence on production chains linked to China.
