TAIPEI (TVBS News) — The New York Times (紐約時報) reported on Tuesday (Jan. 13) that the Trump administration on Monday moved closer to finalizing a trade agreement with Taiwan, potentially reducing tariffs on Taiwanese goods to 15%. The anticipated deal comes amid ongoing discussions over tariffs, which have affected trade negotiations between the two nations.
The New York Times notes that Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC, 台積電), a leading player in global chip production, has committed to increasing its investment in the U.S. by constructing at least five additional semiconductor plants. These chips are crucial for computers and data centers in artificial intelligence. Since 2020, TSMC has completed one semiconductor plant in Arizona, with a second expected to become operational in 2028.
The Taiwanese government and the U.S. Trade Representative's Office have concluded discussions on Section 232 and TSMC's investment projects. However, the U.S. Trade Representative's Office and the Commerce Department did not respond to inquiries from the New York Times regarding the ongoing trade negotiations.
In the report, Beijing authorities, who consider Taiwan part of China, have conducted live-fire military exercises in the Taiwan Strait, heightening global supply chain risks. More than one-third of Taiwan's total exports are semiconductors, and any U.S. tariffs on chips could have a significant impact on Taiwan and TSMC.