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US, Taiwan reach $250B ‘America First’ tariff deal over semiconductors
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The United States and Taiwan on Thursday signed a new trade agreement aimed at reshoring semiconductor manufacturing and strengthening U.S. supply chains, according to the Department of Commerce.
The deal commits Taiwanese semiconductor and technology companies to at least $250 billion in direct U.S. investment to advance “America First trade and investment” with an additional $250 billion in credit guarantees to support expansion across the supply chain.
American and Taiwanese officials say the agreement is designed to reverse decades of offshoring that cut America’s share of global semiconductor fabrication from 37% in 1990 to under 10% in 2024.
The Commerce Department, led by Secretary Howard Lutnick, announced a new trade agreement aimed at reshoring semiconductor manufacturing and strengthening U.S. supply chains. (Chris J. Ratcliffe/Bloomberg via Getty Images / Getty Images)
The framework also establishes U.S.-based industrial parks and sets tariff rules, capping reciprocal U.S. tariffs on Taiwanese goods at 15%, with zero tariffs on select items like pharmaceuticals and aircraft components.
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Future U.S. semiconductor tariffs will reward Taiwanese companies that build production in the United States, allowing duty-free imports tied directly to new U.S. manufacturing capacity.
This is a developing story. Please check back for updates.
