"US President Donald Trump announced a 32 percent reciprocal tariff on Taiwanese exports in April, before lowering the rate to 20 percent in August pending further negotiations. Countries have made pledges to boost investments in the US in exchange for tariff relief since Trump launched his trade war last year. Japan and South Korea last year agreed to invest $550bn and $350bn, respectively, to see their tariff rates cut from 25 to 15 percent."
"TSMC, the world's largest chipmaker and supplier to companies such as Nvidia and Apple, said in March that it planned to spend $100bn on new fabrication and packing plants in the US, bringing its total investment in the country to $165bn. Due to its strategic importance, the chipmaker has been under pressure from Washington since 2020 to expand production outside Taiwan."
Taiwan and the United States reached a general consensus on a trade pact to reduce US tariffs on Taiwanese exports after months of negotiations. The negotiations aim for reciprocal tariff reductions without stacking tariffs and to obtain preferential treatment under Section 232. The US had set reciprocal tariffs at 32 percent, later lowered to 20 percent pending talks, with the deal expected to lower the rate to 15 percent. As part of the agreement, TSMC would build at least four production facilities in Arizona. TSMC plans $100bn in new US fabrication and packaging plants, bringing total US investment to $165bn. The chipmaker has faced pressure since 2020 to expand production outside Taiwan. Other countries have made large investment pledges in exchange for tariff relief.
Read at www.aljazeera.com
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