The Trump administration is reportedly close to finalising a tariff agreement with Taiwan, signalling a move to strengthen trade relations with a significant Asian partner. According to an unnamed source familiar with the matter, Washington and Taipei have entered the final stages of negotiations. Details of the potential agreement remain undisclosed by the source.
The New York Times reported earlier that the deal would involve the US lowering tariffs on Taiwanese exports from 20 per cent to 15 per cent. In return, Taiwan Semiconductor Manufacturing (TSMC) would commit to constructing five new chip manufacturing plants in Arizona, effectively doubling its manufacturing footprint in the state. The report, citing anonymous sources, suggests an announcement could be made this month.
TSMC is the world’s leading manufacturer of advanced chips used in artificial intelligence. The company’s commitments would build upon existing plans for up to $US165 billion in US investments, along with a previous pledge to establish six factories and two packaging facilities in Arizona.
As of yet, the White House, the Office of the US Trade Representative, and the Commerce Department have not issued any comments regarding the potential agreement.
