Tariffs are reduced, investments are growing: the US and Taiwan have signed a large-scale agreement worth $250 billion
16 January 20:29
The US and Taiwan have signed a new trade agreement that provides for lower tariffs on Taiwanese goods and $250 billion in investments in the American technology sector. Washington calls the document one of the key steps towards restoring its own semiconductor production.
This was reported by the Associated Press, according to "Komersant Ukrainian".
What the agreement provides for
Under the agreement, the tariff rate on Taiwanese goods will be reduced from 20% to 15% — to the level already in effect for other US partners in the Asia-Pacific region, including Japan and South Korea.
The US Department of Commerce called the agreement “historic” and one that should contribute to a large-scale return of the American semiconductor sector. The department noted that cooperation with Taiwan will allow the creation of several “world-class” industrial parks in the US.
Investments and the “Taiwan model”
The Taiwanese government has announced that companies on the island will invest $250 billion in semiconductor manufacturing, artificial intelligence technology, and energy in the US.
The Taiwanese side emphasizes that the so-called “Taiwan model” will be adapted in America, which should simultaneously strengthen the global competitiveness of the island’s technology sector and deepen the strategic partnership between the countries.
Business incentives
The US Department of Commerce has also announced exemptions from customs duties for certain categories of imports from Taiwan, including generic drugs and aviation components.
Special preferential terms are provided for Taiwanese semiconductor manufacturers who invest in the US, including full exemption from customs duties.
Political and global context
The agreement with Taiwan is the latest in a series of trade agreements concluded by US President Donald Trump following agreements with the European Union and Japan. They are part of his announced plan to reduce the trade deficit by revising customs policy.
At the same time, the US has concluded a one-year trade truce with China in an attempt to stabilize relations with the world’s second-largest economy amid growing tensions over Taiwan.
