The Trump administration is advancing toward the final stages of a trade deal with Taiwan that would see the island’s tariff rate reduced to 15% from 20% and Taiwan Semiconductor (TSM) agreeing to build at least five semiconductor fabs in Arizona, according to The New York Times. A framework of the deal could be announced as soon as this month.
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Taiwan Semiconductor already has one semiconductor fab running in Arizona, with a second facility expected to be completed in 2028.
U.S. Weighs 15% Tariff for Taiwan, Matching Asian Allies
The proposed 15% tariff rate on Taiwan’s imports matches the duties negotiated with Japan and South Korea, while China’s rate stands at roughly 30%. Taiwan Semiconductor’s investment in the U.S. is a key part of the deal as the Trump administration seeks to bolster domestic chipmaking.
In 2024, the U.S. exported $42.5 billion of goods to Taiwan and imported $116.3 billion of goods from it, resulting in a U.S. trade deficit of $73.7 billion.
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