"The agreement will "drive a massive reshoring of America's semiconductor sector," the US Commerce Department said. In an interview to news channel CNBC, US Commerce Secretary Howard Lutnick said the objective was to bring 40% of Taiwan's entire chip supply chain and production to the United States. Had Taipei not agreed to manufacture in the US, the tariffs would likely be 100%, Lutnick added."
"Under the long-negotiated deal, the US will lower tariffs on Taiwanese goods to 15% from the previous 20%, which was meant to address the US trade deficit. Tariffs on sectors like auto parts, timber and lumber will be capped at 15% while generic pharmaceutical products and certain natural resources will see no duties, the Commerce Department added. Taiwanese chip and tech businesses will make "new, direct investments totaling at least $250 billion" in the US to expand capacity in advanced semiconductors and artificial intelligence."
Washington and Taipei reached a trade deal reducing tariffs and encouraging Taiwanese technology investment in the United States. The US will cut tariffs on Taiwanese goods from 20% to 15%, cap tariffs on auto parts, timber and lumber at 15%, and eliminate duties on some generic pharmaceuticals and natural resources. Taiwanese chip and tech companies committed at least $250 billion in new direct US investments to expand advanced semiconductor and artificial intelligence capacity. US officials aim to relocate 40% of Taiwan's chip supply chain and production to the United States. The agreement may provoke opposition from China and reinforces US-Taiwan strategic ties.
Read at www.dw.com
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