US and Taiwan Forge $250B ‘America First’ Tariff Agreement on Semiconductors
Gatestone Institute senior fellow Gordon Chang breaks down Taiwan’s $40B defense push and China’s talks with Russia and the U.S.-Japan relationship on ‘Mornings with Maria.’
The United States and Taiwan recently signed a significant trade agreement aimed at reshoring semiconductor manufacturing and bolstering U.S. supply chains, as reported by the Department of Commerce.
This landmark deal commits Taiwanese semiconductor and technology companies to invest at least $250 billion directly into the U.S. market. In addition, it includes another $250 billion in credit guarantees to support expansion throughout the supply chain. This strategic move is designed to reverse decades of offshoring that have significantly reduced America’s share of global semiconductor fabrication—from 37% in 1990 to under 10% by 2024.
The Commerce Department, led by Secretary Howard Lutnick, announced a new trade agreement aimed at reshoring semiconductor manufacturing and strengthening U.S. supply chains. (Chris J. Ratcliffe/Bloomberg via Getty Images / Getty Images)
The framework established by this agreement also includes the creation of U.S.-based industrial parks and sets specific tariff rules. Notably, it caps reciprocal U.S. tariffs on Taiwanese goods at 15%, while imposing zero tariffs on select items, including pharmaceuticals and aircraft components.
Future U.S. semiconductor tariffs will incentivize Taiwanese companies that establish production facilities in the United States, allowing for duty-free imports directly linked to new U.S. manufacturing capacity.
This is a developing story. Please check back for updates.
Gatestone Institute senior fellow Gordon Chang breaks down Taiwan’s $40B defense push and China’s talks with Russia and the U.S.-Japan relationship on ‘Mornings with Maria.’
The United States and Taiwan recently signed a significant trade agreement aimed at reshoring semiconductor manufacturing and bolstering U.S. supply chains, as reported by the Department of Commerce.
This landmark deal commits Taiwanese semiconductor and technology companies to invest at least $250 billion directly into the U.S. market. In addition, it includes another $250 billion in credit guarantees to support expansion throughout the supply chain. This strategic move is designed to reverse decades of offshoring that have significantly reduced America’s share of global semiconductor fabrication—from 37% in 1990 to under 10% by 2024.
The Commerce Department, led by Secretary Howard Lutnick, announced a new trade agreement aimed at reshoring semiconductor manufacturing and strengthening U.S. supply chains. (Chris J. Ratcliffe/Bloomberg via Getty Images / Getty Images)
The framework established by this agreement also includes the creation of U.S.-based industrial parks and sets specific tariff rules. Notably, it caps reciprocal U.S. tariffs on Taiwanese goods at 15%, while imposing zero tariffs on select items, including pharmaceuticals and aircraft components.
Future U.S. semiconductor tariffs will incentivize Taiwanese companies that establish production facilities in the United States, allowing for duty-free imports directly linked to new U.S. manufacturing capacity.
This is a developing story. Please check back for updates.
