U.S. announces agreement on trade and investment with Taiwan

The American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States signed a trade deal that will “drive a reshoring of America’s semiconductor sector,” the Commerce Department announced. “This unprecedented commitment will strengthen U.S. economic resilience, create high-paying jobs, and bolster national security. The agreement establishes a strategic economic partnership between the United States and Taiwan to decisively strengthen U.S. domestic semiconductor supply chains and secure America’s technological and industrial leadership. Taiwanese semiconductor and technology enterprises will make new, direct investments totaling at least $250 billion to build and expand advanced semiconductor, energy, and artificial intelligence production and innovation capacity in the United States. Taiwan will provide credit guarantees of at least $250 billion to facilitate additional investment by Taiwanese enterprises, supporting the establishment and expansion of the full semiconductor supply chain and ecosystem in the United States… The agreement will enhance balanced trade through a predictable tariff framework. The U.S. reciprocal tariff rate applied to Taiwanese goods will total no more than 15 percent. The U.S. Section 232 duties applied to Taiwanese auto parts, timber, lumber, and wood derivative products will total no more than 15 percent. The United States will apply a zero percent reciprocal tariff for generic pharmaceuticals, their generic ingredients, aircraft components, and unavailable natural resources. Future Section 232 duties applied to Taiwanese semiconductors will reward Taiwanese semiconductor producers that invest in the United States,” Commerce stated.