A Taiwan flag can be seen on an overpass ahead of National Day celebrations in Taipei, Taiwan, October 8, 2025. REUTERS/Ann Wang
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CNBC TV1816-01-2026, 05:03

US-Taiwan Seal Landmark Trade Deal: Tariffs Cut to 15% for $250 Billion Investment

  • The US and Taiwan have signed a trade deal, reducing reciprocal tariffs on Taiwan from 20% to 15%.
  • Taiwan's tech industry, including TSMC, committed to a $250 billion investment in the US for advanced semiconductors, energy, and AI.
  • The deal includes $250 billion in credit guarantees for the US semiconductor supply chain, with TSMC expected to build more plants in Arizona.
  • US Commerce Secretary Howard Lutnick stated Taiwan agreed to the investment to avoid potential 100% tariffs.
  • In return, the US capped tariffs on Taiwanese auto parts, timber, and wood products at 15%, and zero-rated generic pharma and ingredients.

Why It Matters: US-Taiwan trade deal cuts tariffs to 15% for $250 billion investment, boosting US tech and manufacturing.

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