US media stories say tariffs shall be minimize to fifteen p.c in alternate for TSMC funding.
Revealed On 13 Jan 2026
Taiwan and the US have reached a “common consensus” on a commerce pact that would cut back US tariffs on Taiwanese exports, officers in Taipei have stated.
Taiwan’s Workplace of Commerce Negotiations stated on Tuesday that the outlines of a deal had been reached following months of negotiations with US officers.
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“The objective of the US-Taiwan tariff negotiations has all the time been to hunt reciprocal tariff reductions with out stacking tariffs, and to acquire preferential remedy beneath Part 232,” the workplace stated in an announcement, in keeping with the AFP information company.
The commerce workplace didn’t instantly reply to Al Jazeera’s request for remark.
US President Donald Trump introduced a 32 p.c “reciprocal tariff” on Taiwanese exports in April, earlier than decreasing the speed to twenty p.c in August pending additional negotiations.
Nations have made pledges to spice up investments within the US in alternate for tariff reduction since Trump launched his commerce battle final 12 months.
Japan and South Korea final 12 months agreed to speculate $550bn and $350bn, respectively, to see their tariff charges minimize from 25 to fifteen p.c.
Taiwan’s commerce workplace didn’t present particulars on the deal, however Bloomberg and The New York Instances reported that the self-governing island’s tariff charge can be lowered to fifteen p.c.
As a part of the deal, the Taiwan Semiconductor Manufacturing Firm (TSMC) would conform to construct a minimum of 4 extra manufacturing amenities within the US state of Arizona, in keeping with Bloomberg and The New York Instances, which cited unnamed officers.
TSMC, the world’s largest chipmaker and provider to corporations corresponding to Nvidia and Apple, stated in March that it deliberate to spend $100bn on new fabrication and packing vegetation within the US, bringing its whole funding within the nation to $165bn.
Resulting from its strategic significance, the chipmaker has been beneath strain from Washington since 2020 to broaden manufacturing outdoors Taiwan.
The US fears {that a} blockade of Taiwan by China, which claims the island as its territory, might minimize off entry to TSMC’s chips.
Whereas TSMC has agreed to construct new manufacturing amenities within the US, Japan, and Germany, it continues to make its most superior chips in Taiwan.
