Archive · 13 Jan 2026
US-Taiwan Trade Deal Nears Completion
The US and Taiwan are close to making a trade deal.
This deal would help a big company called TSMC build more computer chip factories in the US.
Right now, the US charges a 20% tax on things imported from Taiwan, but this deal would lower that tax to 15%.
This is similar to the taxes on imports from South Korea and Japan.
TSMC has already promised to spend a lot of money in the US, and this deal would add even more money and factories.
The new factories would be built in the 2030s.
Taiwan also wants to keep making the most advanced chips at home.
The deal is good for both the US and Taiwan because it helps make more computer chips in the US and makes it cheaper to import things from Taiwan.
Taiwan and the US have reached a 'general consensus' on a trade deal after months of negotiations.
The deal aims to reduce US tariffs on Taiwanese imports from 20% to 15% and secure preferential treatment for semiconductors.
Taiwanese President Lai Ching-te has pledged to boost investment in the US and increase defence spending to 5% of GDP by 2030.
TSMC plans to invest an additional $100 billion in the US, building four more chip factories in Arizona.
Taiwan's trade surplus with the US was $73.9 billion in 2024, with over half of its exports being information and communications technology products.
- Who
- US and Taiwan (Taiwan Semiconductor Manufacturing Co.)
- What
- Potential trade agreement to increase chip production in the US and reduce tariffs on Taiwanese imports
- When
- Nearing completion, with additional factories planned for the 2030s
- Where
- United States (Arizona) and Taiwan
- Why
- To boost US chip production, reduce tariffs, and secure investment from a major overseas manufacturer
- Companies Involved
- Taiwan Semiconductor Manufacturing Co. (TSMC)
- Current US Tariffs on Taiwan Imports
- 20%
- Proposed US Tariffs on Taiwan Imports
- 15%
- TSMC's Current US Investment Commitment
- $165 billion
- Additional TSMC Factories Planned
- 4
- Estimated Cost per Factory
- Up to $20 billion
- Completion Timeline for Additional Factories
- 2030s
- Taiwan's Trade Surplus with the US (2024)
- $73.9 billion
- Taiwan's Defence Spending Goal by 2030
- 5% of GDP
