Taiwan vowed to remain the world’s most important AI chipmaker after reaching a trade deal with the United States that reduces tariffs on its exports and increases Taiwanese investment in America.
Under the agreement, Washington will lower tariffs on Taiwanese goods to 15 per cent, down from a previous 20 per cent reciprocal rate. The deal is expected to accelerate reshoring of semiconductor production to the United States, according to the U.S. Commerce Department.
Taiwanese Premier Cho Jung-tai praised the negotiators, describing the outcome as a well-executed home run after months of talks. Economic Affairs Minister Kung Ming-hsin said Taiwan would remain the world’s most important producer of AI semiconductors despite expanded overseas production.
Advanced chip production capacity is projected to be split 85–15 between Taiwan and the United States by 2030, and 80–20 by 2036. China’s foreign ministry said it resolutely opposes the deal.
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The agreement includes Taiwanese investments of at least $250 billion in the United States and additional credit guarantees of the same value to support further expansion. Sector-specific tariffs on auto parts, timber and wood products will be capped at 15 per cent, while certain pharmaceuticals and natural resources will face no reciprocal duties.
Taiwan’s opposition lawmakers have expressed concern that the deal could weaken domestic industry, but the government insists the agreement protects Taiwan’s strategic interests while strengthening global supply chains.
PUNCH
