US media studies say tariffs might be lower to fifteen p.c in alternate for TSMC funding.
Revealed On 13 Jan 2026
Taiwan and the US have reached a “basic consensus” on a commerce pact that would scale 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 at all times been to hunt reciprocal tariff reductions with out stacking tariffs, and to acquire preferential therapy below Part 232,” the workplace stated in a press release, 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.
International locations have made pledges to spice up investments within the US in alternate for tariff aid since Trump launched his commerce struggle final 12 months.
Japan and South Korea final 12 months agreed to speculate $550bn and $350bn, respectively, to see their tariff charges lower 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 fee 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 services 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 firms corresponding to Nvidia and Apple, stated in March that it deliberate to spend $100bn on new fabrication and packing crops within the US, bringing its whole funding within the nation to $165bn.
Resulting from its strategic significance, the chipmaker has been below 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 lower off entry to TSMC’s chips.
Whereas TSMC has agreed to construct new manufacturing services within the US, Japan, and Germany, it continues to make its most superior chips in Taiwan.
