Taiwan has reached a new trade agreement with the United States that significantly lowers tariffs on its exports, a move welcomed by Taipei but criticized by Beijing.
Under the deal signed on Friday, U.S. tariffs on Taiwanese goods will be reduced to 15% in exchange for $250 bn in new Taiwanese investments in the U.S. technology sector. Taiwan’s Premier Cho Jung-tai described the agreement as the «best tariff deal» secured by countries running trade surpluses with Washington, noting that the rate matches those applied to Japan, South Korea, and the European Union.
U.S. tariffs on Taiwanese products were initially set at 32% before being revised downward to 20%, and ultimately to 15% following negotiations. The agreement also includes tariff exemptions for certain aerospace components, while industries such as automotive manufacturing and wood furniture will benefit from the reduced rate without additional fees.
The U.S. Department of Commerce said the deal would establish a closer economic partnership, including the development of industrial parks aimed at boosting domestic manufacturing and reshoring semiconductor production. Taiwanese chipmakers investing in the U.S. will receive preferential tariff treatment, including exemptions.
China sharply criticised the agreement, reiterating its opposition to any deals between the United States and Taiwan that carry what it calls sovereign implications. The agreement must still be ratified by Taiwan’s parliament, where some lawmakers have raised concerns about potential impacts on the domestic semiconductor industry.
The deal comes as Taiwan Semiconductor Manufacturing Company (TSMC) announced plans to sharply increase capital spending and accelerate construction of new plants in the United States, underscoring the deepening economic ties between Washington and Taipei.
Kursiv Uzbekistan also reports mass protests have erupted across cities in Iran, with demonstrations increasingly turning violent amid deepening economic and social crises, according to media reports and images circulating from the country.
