US-Taiwan Trade Accord Spurs Tech Investment Surge

The US and Taiwan have secured a trade agreement, reducing tariffs on Taiwanese goods in exchange for $250 billion in Taiwanese investment in the US tech sector. This pact aims to fortify the American semiconductor industry, with key investments by Taiwan Semiconductor Manufacturing Company. The deal has faced criticism from China.

The United States and Taiwan finalized a trade agreement on Thursday, effectively reducing tariffs on Taiwanese goods while welcoming $250 billion in Taiwanese investment in the American tech industry. This development is part of President Donald Trump's broader strategy to realign trade relations, following agreements with the EU and Japan, and a temporary truce with China.

Under the new deal, tariffs on Taiwanese products will drop from the initially set 32% to 15%, aligning them with those from other Asia-Pacific trade partners. The US Department of Commerce hailed the agreement as laying the groundwork for an 'economic partnership,' promising a revitalization of the American semiconductor industry through domestic industrial parks. Taiwan confirmed major investments in semiconductors and AI.

Beijing has dismissed the agreement as exploitative, while Taiwan-based TSMC, the world's top chipmaker, announced significant capital spending increases, spurred by thriving AI markets. TSMC also plans substantial US investments in Arizona, aiming to meet robust client demand. Analysts predict continued growth due to TSMC's key role in advanced chip production.