Trump administration prepares trade deal with Taiwan: tariff reduction in exchange for factories
Kyiv • UNN
The Trump administration is finalizing negotiations with Taiwan to reduce tariffs by 5% in exchange for expanding semiconductor production. TSMC commits to building five new factories in Arizona.
The administration of US President Donald Trump is in the final stages of negotiations on a large-scale tariff agreement with Taiwan. According to sources familiar with the discussions, Washington plans to reduce import duties on Taiwanese goods from 20% to 15% in exchange for a significant expansion of semiconductor production in the United States. This is reported by UNN, citing Bloomberg.
Details
A key condition of the agreement is the commitment of "Taiwan Semiconductor Manufacturing Co." (TSMC) to build five new microchip manufacturing plants in Arizona. This will effectively double the Taiwanese giant's manufacturing presence in the US.
The new plans will complement TSMC's existing $165 billion investment program, which includes the launch of six factories and two chip packaging facilities. It is expected that the new agreements could be officially announced by the end of January.
Geopolitical and Legal Factors
For Taipei, this agreement will mean receiving a tariff rate on par with Japan and South Korea. For Donald Trump, this will be another victory within the framework of the policy of attracting foreign investment and strengthening the technological sovereignty of the United States, especially in the field of artificial intelligence.
However, the stability of the agreement depends on the US Supreme Court's decision on the legality of Trump's global tariffs, which is expected this Wednesday. The abolition of the tariff regime could deprive the White House of its main leverage in negotiations. In addition, questions remain regarding the timing of such a large-scale expansion of TSMC's production facilities in Arizona.
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