U.S. and Taiwan reach deal lowering tariffs to 15% and boosting financing for U.S. semiconductor operations

January 16, 2026

TL;DR

U.S. and Taiwan agree to a deal lowering tariffs on Taiwanese goods to a maximum of 15%.
Taiwanese semiconductor and tech companies to invest at least $250 billion in U.S. operations for energy, AI, and innovation.
Taiwan will offer credit guarantees of at least $250 billion to expand the chip supply chain in the U.S.
The U.S. will exempt generic pharmaceuticals, aircraft components, and unavailable natural resources from tariffs.
The deal is seen as strategic for competing with China in critical technology sectors.
The announcement precedes a Supreme Court decision on the president's authority to unilaterally levy tariffs.

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