U.S. and Taiwan Reach Agreement!

On January 15, 2026, the U.S. reached an agreement on trade and investment with Taiwan. According to an announcement on the Commerce website, the agreement signed “will drive a massive reshoring of America’s semiconductor sector.” Taiwanese companies will build and expand production and capacity in the U.S., while Taiwan will provide credit guarantees to facilitate the investment.

As a result of the agreement, U.S. importers will receive tariff reductions on goods from Taiwan, including:

• The U.S. reciprocal tariff rate applied to Taiwanese goods will total no more than 15 percent. 
• The U.S. Section 232 duties applied to Taiwanese auto parts, timber, lumber, and wood derivative products will total no more than 15 percent.
• The United States will apply a zero percent reciprocal tariff for generic pharmaceuticals, their generic ingredients, aircraft components, and unavailable natural resources. 
• Future Section 232 duties applied to Taiwanese semiconductors will reward Taiwanese semiconductor producers that invest in the United States.
  • Taiwanese companies building new U.S. semiconductor capacity may import up to 2.5 times that planned capacity without paying Section 232 duties during the approved construction period, with a lower preferential Section 232 rate for above-quota imports.
  • Taiwanese companies who have completed new chip production projects in the United States will still be able to import 1.5 times their new U.S. production capacity without paying Section 232 duties.

The effective date of the new tariff benefits has not yet been announced.

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