Trump Slashes Taiwan Tariffs to 15 Percent, Secures $250 Billion Investment in Semiconductor and AI Sectors
11 February 2026

Trump Slashes Taiwan Tariffs to 15 Percent, Secures $250 Billion Investment in Semiconductor and AI Sectors

Taiwan Tariff News and Tracker

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Welcome to Taiwan Tariff News and Tracker, where we break down the latest developments in US-Taiwan trade under President Trump.

In a major breakthrough, the Trump administration has agreed to slash tariffs on Taiwanese imports from 20 percent to no more than 15 percent, according to reports from Data Center Dynamics and Tom's Hardware. This pivotal move stems from a recent US-Taiwan trade deal, where Taiwan commits to investing $250 billion in American semiconductor, energy, and AI production. Reuters confirms Taiwan's negotiators, led by Vice Premier Cheng Li-chiun, arrived in the US yesterday for final meetings to seal the Taiwan-US Agreement on Reciprocal Trade, with full details soon heading to Taiwan's parliament.

TSMC, the world's top chipmaker, stands at the heart of this. The deal offers tariff exemptions for hyperscalers like Google, Microsoft, and Amazon, tied directly to TSMC's US investments—already at $165 billion but potentially scaling higher. Financial Times sources note exemptions could cover up to 2.5 times new US facilities' capacity during construction, channeling chips to Big Tech while boosting American fabs. Yet TSMC cautions it can't hit 40 percent US output soon, amid AI bubble fears and competition from Intel.

Tensions simmer with China. The US House overwhelmingly passed a bill yesterday—395 to 2—to bar China from global bodies like the G20 and Basel Committee if it threatens Taiwan, per Insurance Journal and Straits Times. This comes as Trump preps an April Beijing summit with Xi, amid talks on trade, rare earths, and Taiwan status.

These shifts underscore Trump's push to reshore chips, balancing carrots for Taiwan with sticks for Beijing. Listeners, stay tuned as details firm up.

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