The US and Taiwan have signed a trade agreement that will slash tariffs on the country to 15 per cent in exchange for a $250bn investment in the chip industry in the US, as Washington moves to secure semiconductor supply chains and boost investment in American manufacturing.
President Donald Trump’s administration said it would reduce levies on most goods from Taiwan from 20 per cent to 15 per cent, in line with duties on Japan and South Korea, and waive tariffs on generic drugs, aerospace parts and natural resources unavailable in the US.
Taiwanese semiconductor and technology companies would invest $250bn in the US, and Taiwan would provide credit guarantees for at least that amount, the two governments said. The agreement also sets out quotas for tariff-free imports of chips from Taiwan, where Taiwan Semiconductor Manufacturing Co, the world’s largest semiconductor manufacturer, makes most of the world’s advanced chips.