Taiwan Found a Way to Buy Its Way Out of Trump Tariffs 0 59

The United States will reduce tariffs on semiconductors imported from Taiwan and also decrease the overall tariffs on most other goods imported from the state from 20 to 15 percent. The corresponding agreement was reached between Washington and Taipei, as reported by Reuters.

In exchange, Taiwanese companies will invest $250 billion to increase semiconductor, energy, and artificial intelligence production in the U.S. According to U.S. Secretary of Commerce Howard Lutnick, TSMC has already allocated $100 billion by 2025, with further investment increases expected. The Trump administration also stated that Taiwan guarantees the provision of additional loans amounting to $250 billion.

Lutnick emphasized that the White House hopes to transfer 40 percent of Taiwan's entire semiconductor supply chain and production to the U.S. If production does not take place in the U.S., tariffs are likely to jump to 100 percent.

In October 2025, Taiwan's exports in September rose by 30.5 percent year-on-year, reaching a record $70.2 billion. This dynamic was driven by the increasing demand for artificial intelligence chips.