Economy|Business and EconomyTaiwan says ‘general consensus’ reached with US on trade dealUS media reports say tariffs will be cut to 15 percent in exchange for TSMC investment.
Taiwan and the United States have reached a general consensus on a trade agreement aimed at reducing US tariffs on Taiwanese exports, as confirmed by officials in Taipei.
Taiwan and the United States have reached a general consensus on a trade agreement aimed at reducing US tariffs on Taiwanese exports, as confirmed by officials in Taipei.
Taiwan’s Office of Trade Negotiations announced on Tue, Jan 12, 2026, that the basic framework of the agreement was established after several months of discussions with US counterparts.
The objective of these negotiations has been to achieve reciprocal tariff reductions without the accumulation of tariffs and to secure preferential treatment under Section 232. This has been stated by the trade office in an official communication.
In April, the US government, under President Donald Trump, initially imposed a 32 percent reciprocal tariff on Taiwanese exports, which was later reduced to 20 percent in August, contingent upon further negotiations.
This has been stated by the trade office in an official communication.
International Investments and Tariff Adjustments
Various countries have committed to increasing investments in the US in return for tariff reductions. Last year, Japan and South Korea agreed to invest $550 billion and $350 billion, respectively, leading to a reduction in their tariff rates from 25 to 15 percent.
Although Taiwan's trade office has not disclosed specifics of the agreement, reports suggest that Taiwan's tariff rate will be reduced to 15 percent. As part of the agreement, the Taiwan Semiconductor Manufacturing Company (TSMC) plans to construct at least four additional production facilities in Arizona, USA.
TSMC, a leading chipmaker supplying major companies like Nvidia and Apple, announced in March its intention to invest $100 billion in new fabrication and packaging plants in the US, bringing its total investment in the country to $165 billion. This move is partly in response to strategic pressures from Washington to diversify production locations beyond Taiwan.
Concerns persist in the US regarding potential disruptions in access to TSMC's chips due to geopolitical tensions with China, which considers Taiwan as part of its territory. While TSMC is expanding its facilities in the US, Japan, and Germany, it continues to manufacture its most advanced chips in Taiwan.
Based on reporting by Al Jazeera.