01 February 2026
US Taiwan Trade Tensions Ease: Trump Slashes Tariffs, Secures Major Semiconductor Investments in Landmark Deal
Taiwan Tariff News and Tracker
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Welcome to Taiwan Tariff News and Tracker, your essential update on the latest US-Taiwan trade developments under President Trump.
In a major shift, the US reciprocal tariff on most Taiwanese imports has dropped from an initial 32 percent imposed on April 2, 2025, to 20 percent as of August 1, 2025, according to the Wikipedia entry on Tariffs in the second Trump administration. Business Standard reports that Trump later adjusted it further to 15 percent under a new agreement, slashing rates to boost negotiations while pressuring Taiwan's semiconductor giants.
Caribbean News Global highlights how these steep tariffs forced Taiwan into swift talks, leading to massive investments: TSMC pledged about 100 billion dollars for Arizona fabs, and in January 2026, Taiwan's tech firms committed to at least 250 billion dollars in new US manufacturing, backed by another 250 billion in government credit guarantees from the US Department of Commerce. This "America First" strategy exploited China's military pressures around Taiwan, securing a US-tilted trade deal without retaliation from Taipei.
On the security front, Trump's policy mixes high tariffs with support: he approved a record 11 billion dollar arms package for Taiwan's asymmetric warfare shift, demanded defense spending rise to 3.3 percent of GDP by 2026 and 5 percent by 2030—the island's largest ever—and signed the Taiwan Assurance Implementation Act in December 2025 to ease official contacts. The administration's National Security Strategy emphasizes Taiwan's strategic role in semiconductors and the Second Island Chain.
Taiwan Today notes ongoing tariff negotiations as of January 2026, with Deputy Foreign Minister François Chih-chung Wu affirming commitment to US chip production goals. Analysts from East Asia Forum warn of uncertainties as Trump eyes US-China trade truces and a potential 2026 China visit, possibly using Taiwan as a bargaining chip.
These mixed signals—coercive tariffs alongside record arms sales—compound strategic ambiguity, heightening stakes across the Strait.
Thanks for tuning in, listeners—subscribe now for weekly updates. This has been a Quiet Please production, for more check out quietplease.ai.
For more check out https://www.quietperiodplease.com/
Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q
This content was created in partnership and with the help of Artificial Intelligence AI
In a major shift, the US reciprocal tariff on most Taiwanese imports has dropped from an initial 32 percent imposed on April 2, 2025, to 20 percent as of August 1, 2025, according to the Wikipedia entry on Tariffs in the second Trump administration. Business Standard reports that Trump later adjusted it further to 15 percent under a new agreement, slashing rates to boost negotiations while pressuring Taiwan's semiconductor giants.
Caribbean News Global highlights how these steep tariffs forced Taiwan into swift talks, leading to massive investments: TSMC pledged about 100 billion dollars for Arizona fabs, and in January 2026, Taiwan's tech firms committed to at least 250 billion dollars in new US manufacturing, backed by another 250 billion in government credit guarantees from the US Department of Commerce. This "America First" strategy exploited China's military pressures around Taiwan, securing a US-tilted trade deal without retaliation from Taipei.
On the security front, Trump's policy mixes high tariffs with support: he approved a record 11 billion dollar arms package for Taiwan's asymmetric warfare shift, demanded defense spending rise to 3.3 percent of GDP by 2026 and 5 percent by 2030—the island's largest ever—and signed the Taiwan Assurance Implementation Act in December 2025 to ease official contacts. The administration's National Security Strategy emphasizes Taiwan's strategic role in semiconductors and the Second Island Chain.
Taiwan Today notes ongoing tariff negotiations as of January 2026, with Deputy Foreign Minister François Chih-chung Wu affirming commitment to US chip production goals. Analysts from East Asia Forum warn of uncertainties as Trump eyes US-China trade truces and a potential 2026 China visit, possibly using Taiwan as a bargaining chip.
These mixed signals—coercive tariffs alongside record arms sales—compound strategic ambiguity, heightening stakes across the Strait.
Thanks for tuning in, listeners—subscribe now for weekly updates. This has been a Quiet Please production, for more check out quietplease.ai.
For more check out https://www.quietperiodplease.com/
Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q
This content was created in partnership and with the help of Artificial Intelligence AI