The United States and Taiwan reached a bilateral agreement that reduced reciprocal tariffs on most Taiwanese goods to 15% and locked in sweeping commitments to expand U.S. semiconductor and technology capacity. Under the agreement, broad reciprocal tariffs on Taiwanese exports were lowered from 20% to 15%, placing Taiwan on par with recent U.S. arrangements with other Asian economies. Sector-specific reciprocal tariffs for products such as auto parts, timber, lumber and wood products were capped at 15%, while certain categories including generic pharmaceuticals, aircraft components and some natural resources were exempted from reciprocal duties at 0%. On the financial side, Taiwanese semiconductor and technology firms committed to "new, direct investments totaling at least $250 billion" in the United States to build and expand capacity in advanced semiconductors and artificial intelligence. Taiwan's government also pledged "credit guarantees of at least $250 billion to facilitate additional investment by Taiwanese enterprises."

Source: The Guardian January 16, 2026 21:46 UTC