U.S. and Taiwan Finalize Trade Deal Cutting Tariffs and Boosting Semiconductor Investment

The U.S. and Taiwan have finalized a trade deal reducing tariffs on Taiwanese semiconductor exports from 20% to 15%, while exempting certain sectors like generic pharmaceuticals from duties. Taiwanese companies, including TSMC, have pledged $250 billion to expand semiconductor, energy, and AI production in the U.S., supported by an additional $250 billion in credit guarantees. The agreement aims to boost U.S. chip manufacturing and deepen Taiwan-U.S. technology ties amid rising tensions with China, with Taiwan seeking to become a strategic AI partner.