Taiwan and the US have reached a broad consensus on a trade deal, the Executive Yuan’s Office of Trade Negotiations said yesterday, after a report said that Washington is set to reduce Taiwan’s tariff rate to 15 percent.
The New York Times on Monday reported that the two nations are nearing a trade deal to reduce Taiwan’s tariff rate to 15 percent and commit Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to building at least five more facilities in the US.
“The agreement, which has been under negotiation for months, is being legally scrubbed and could be announced this month,” the paper said, citing three people familiar with the matter.
Photo: CNA
The reduced tariff rate is in line with those applied to Japan and South Korea, which struck trade deals last year, it said.
The timeline for TSMC’s further investment in the US remains unclear, it added.
TSMC did not comment on the report, but would likely address the issue at its investors’ conference tomorrow.
The objective of trade negotiations with the US has always been to reduce reciprocal tariffs without stacking them and secure preferential treatment for semiconductors under a legal provision known as Section 232, the office said in a statement.
After the fifth round of in-person Taiwan-US talks, Taipei continued to discuss supply chain cooperation with the US Department of Commerce through video meetings and written exchanges, it said.
Taiwan asked the US to create a more favorable investment environment for Taiwanese companies by offering support such as access to land, water, electricity and visas, as well as simpler administrative procedures, it said.
Taiwan also continued to exchange documents with the Office of the US Trade Representative to confirm the details of a bilateral trade agreement, and the two sides have reached a certain degree of consensus, it added.
Taiwan and the US are scheduling a final wrap-up meeting, after which they would publicly announce the details of the deal, the office said.
The government would brief the Legislative Yuan and the public on the agreement and submit it in full, along with an impact assessment, to the legislature for review, it said.
In the first phase of Taiwan-US trade talks from April to the end of July last year, both sides negotiated tariffs, trade barriers, economic security, procurement and supply chain issues, the office said in previous statements.
Talks then shifted to a second phase focused on supply chain cooperation under the “Taiwan model,” while Taipei continued to seek reduced, non-stacked reciprocal tariffs and preferential treatment under Section 232 for semiconductors and related products, it said.
Taiwan earlier concluded trade discussions with the Office of the US Trade Representative, then continued to discuss Section 232 tariffs and TSMC’s investment plans with the US Department of Commerce, the New York Times said.
Officials in US President Donald Trump’s administration have said companies that invest in the US would not be subject to Section 232 tariffs, but it is unclear exactly how the arrangement would work, it said.
TSMC has three fabs at various stages of development in Arizona under a previous US$65 billion investment commitment.
The first began volume production in the final quarter of 2024.
The structure for the second fab was completed last year, with mass production targeted for 2028.
The company broke ground on a third fab in April last year, with commercial production targeted by the end of the decade, TSMC Arizona said.
Early last year, TSMC pledged an additional US$100 billion in investment that would include another three fabs, but according to the New York Times, the company has pledged as part of the trade talks to build at least five more fabs, instead of the four currently pledged, including the fab on which it broke ground last year.
CHAOS: Iranians took to the streets playing celebratory music after reports of Khamenei’s death on Saturday, while mourners also gathered in Tehran yesterday Iranian Supreme Leader Ayatollah Ali Khamenei was killed in a major attack on Iran launched by Israel and the US, throwing the future of the Islamic republic into doubt and raising the risk of regional instability. Iranian state television and the state-run IRNA news agency announced the 86-year-old’s death early yesterday. US President Donald Trump said it gave Iranians their “greatest chance” to “take back” their country. The announcements came after a joint US and Israeli aerial bombardment that targeted Iranian military and governmental sites. Trump said the “heavy and pinpoint bombing” would continue through the week or as long
TRUST: The KMT said it respected the US’ timing and considerations, and hoped it would continue to honor its commitments to helping Taiwan bolster its defenses and deterrence US President Donald Trump is delaying a multibillion-dollar arms sale to Taiwan to ensure his visit to Beijing is successful, a New York Times report said. The weapons sales package has stalled in the US Department of State, the report said, citing US officials it did not identify. The White House has told agencies not to push forward ahead of Trump’s meeting with Chinese President Xi Jinping (習近平), it said. The two last month held a phone call to discuss trade and geopolitical flashpoints ahead of the summit. Xi raised the Taiwan issue and urged the US to handle arms sales to
BIG SPENDERS: Foreign investors bought the most Taiwan equities since 2005, signaling confidence that an AI boom would continue to benefit chipmakers Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) market capitalization swelled to US$2 trillion for the first time following a 4.25 percent rally in its American depositary receipts (ADR) overnight, putting the world’s biggest contract chipmaker sixth on the list of the world’s biggest companies by market capitalization, just behind Amazon.com Inc. The site CompaniesMarketcap.com ranked TSMC ahead of Saudi Aramco and Meta Platforms Inc. The Taiwanese company’s ADRs on Tuesday surged to US$385.75 on the New York Stock Exchange, as strong demand for artificial intelligence (AI) applications led to chip supply constraints and boost revenue growth to record-breaking levels. Each TSMC ADR represents
Pro-democracy media tycoon Jimmy Lai’s (黎智英) fraud conviction and prison sentence were yesterday overturned by a Hong Kong court, in a surprise legal decision that comes soon after Lai was jailed for 20 years on a separate national security charge. Judges Jeremy Poon (潘兆初), Anthea Pang (彭寶琴) and Derek Pang (彭偉昌) said in the judgement that they allowed the appeal from Lai, and another defendant in the case, to proceed, as a lower court judge had “erred.” “The Court of Appeal gave them leave to appeal against their conviction, allowed their appeals, quashed the convictions and set aside the sentences,” the judges
RSS