US and Taiwan Sign Trade Deal Cutting Tariffs and Boosting Semiconductor Investment

The United States and Taiwan have signed a trade deal reducing US tariffs on Taiwanese goods from 20 to 15 percent, aligning Taiwan with other Asia-Pacific partners. In exchange, Taiwanese companies will invest $250 billion in US semiconductor and technology sectors, supported by an additional $250 billion in credit guarantees. The agreement aims to boost domestic chip manufacturing and AI supply chains, reshoring production to the US. Taiwan's leadership praised the deal, while China condemned it as undermining its sovereignty. The deal also includes tariff exemptions on certain pharmaceuticals and aircraft parts and requires approval by Taiwan's parliament.