Trending:Nobel Peace PrizeIran unrestIndia OpenGrok deepfakesCarney-Xi meetingTaskaree: The Smuggler’s Web reviewAmid trade tussle with China, US reaches deal with Taiwan to cut chip tariffsreuters • January 16, 2026, 10:42:17 ISTWhatsapp Facebook TwitterUnder the new deal, Taiwanese chipmakers such as TSMC expanding in the US will face lower tariffs, dropping from 20% to 15%, and can import some semiconductors and equipment duty-free. AdvertisementSubscribe Join Us+ Follow us On GoogleChoose Firstpost on GoogleAmid trade tussle with China, US reaches deal with Taiwan to cut chip tariffs (Photo: Reuters)The US and Taiwan clinched a trade deal on Thursday that cuts tariffs on many of the semiconductor powerhouse’s exports, directs new investments in the US technology industry and risks infuriating China. The deal deepens the Trump administration’s ties with Taipei at a critical time as China ratchets up pressure on the island, which it views as its own, and Washington has worked to avoid an all-out trade war with Beijing. Under the long-negotiated deal, Taiwanese chipmakers like TSMC that expand US production will be charged a lower tariff on semiconductors or related manufacturing equipment and products they import into the US and can import some duty-free. Broad tariffs that apply to most other Taiwanese exports to the US will fall from 20% to 15%. STORY CONTINUES BELOW THIS ADGeneric pharmaceuticals, aircraft components and “unavailable natural resources” will face a 0% tariff, the Commerce Department said. The US also committed that Taiwan will be treated no worse than anyone else should chips tariffs be increased later, according to Taiwan. More from Tech Can China attempt a Venezuela-style operation against Taiwan?
