Taiwan and US Edge Closer to Crucial Tariff Agreement: Impact on Semiconductor Trade

Taiwan is nearing a tariff agreement with the U.S., potentially reducing tariffs from 20% to 15% on exports. The deal seeks a strategic partnership on AI and chip production. The Taiwan delegation, led by Vice Premier Cheng and trade envoy Yang, will finalize agreements in Washington, D.C.

Taiwan is poised to secure a pivotal tariff agreement with the United States, with both nations working towards a reduction of tariffs on exports from 20% to 15%. This comes after Taiwanese negotiators traveled to Washington for critical discussions aimed at solidifying a strategic partnership in the global semiconductor industry.

The talks, led by Vice Premier Cheng Li-chiun and trade envoy Yang Jen-ni, focus on achieving a reciprocal reduction in tariffs and enhancing Taiwan's preferential treatment for chip exports. This potential deal aligns with Taiwan's strategic goals of bolstering trade balance and spearheading collaborations in the AI supply chain.

Despite the White House's reticence on the matter, sources indicate a forthcoming announcement by the end of the month. Key moves include Taiwan's largest semiconductor firm, TSMC, considering additional investments in the U.S., particularly in facilities in Arizona, promoting further integration of technology sectors between the two countries.

(With inputs from agencies.)