Taiwan Pledges $84 Billion in U.S. Purchases, Cuts Tariffs to 15%
United States and Taiwan agreed to cut tariffs on Taiwanese exports to 15% and remove 99% of U.S. import duties, while Taiwan will purchase over $84 billion in U.S. goods from 2025 to 2029. Taiwanese chip firms committed to invest $250 billion in U.S. production capacity with matching government credit.
1. Trade Deal Lowers Tariffs to 15%
The United States and Taiwan signed an agreement to reduce tariffs on Taiwanese exports to 15%, align Taiwan’s tariffs with other Asian allies and eliminate or cut 99% of import duties on U.S. goods, including autos, beef products and minerals.
2. Taiwan Commits $84 Billion to U.S. Purchases
Under the deal, Taiwan will buy more than $84 billion of U.S. goods between 2025 and 2029, covering liquefied natural gas, crude oil, aircraft and power equipment, securing a major boost in U.S. export demand.
3. Semiconductor Firms Pledge $250 Billion U.S. Investment
Taiwanese chip manufacturers, led by the world’s largest foundry, vowed to invest at least $250 billion in U.S. production capacity, backed by an equivalent amount of government credit designed to expand fabrication facilities stateside.
4. Relocation Dispute Triggers Tariff Risk
Washington’s push to relocate 40% of Taiwan’s semiconductor supply chain to U.S. soil has drawn warnings of 100% tariffs on noncompliant firms, while Taiwanese negotiators argue large-scale relocation is not feasible.