# Taiwan assures continued beneficial trade terms with the United States.

*semiconductor · news · 2026-02-24 · The Economic Times*

## Key points

- Taiwan companies will invest $250 billion in U.S. semiconductor, energy, and AI production.
- Taiwan will provide an additional $250 billion in credit to support further U.S. investment.
- A new deal requires Taiwan to eliminate or lower tariffs on nearly all U.S. goods.
- Taiwan's preferential semiconductor tariff treatment with the U.S. will remain unchanged despite legal shifts.

Synopsis Taiwan assures continued beneficial trade terms with the United States. Vice Premier Cheng Li-chiun stated that existing agreements will not change despite U.S. Supreme Court tariff rulings. Taiwan companies will invest significantly in U.S. semiconductor and AI production. The U.S. side understands the mutual benefits of these deals. Taiwan is confident in maintaining preferential treatment for its exports. Taiwan will work with the U.S. to ensure the beneficial terms it has already agreed do not change despite ructions following the U.S. Supreme Court striking down President Donald Trump's emergency tariffs, Vice Premier Cheng Li-chiun said on Tuesday. Trump on Monday warned countries against backing away from recently negotiated trade deals ‌with the U.S., ⁠saying ⁠that he would hit them with much higher duties under different trade laws. Taiwan has struck two deals with ​the United States to lower the tariffs on its exports to the country to 15% from ​20%. Under last month's deal, Taiwan companies will invest $250 billion to boost production of semiconductors, energy and artificial intelligence in the U.S., while Taiwan will also guarantee an ​additional $250 billion in credit to facilitate further investment. The second deal, ⁠reached this ‌month that confirmed the tariff cut to 15%, commits Taiwan ​to a schedule ​for eliminating or lowering tariffs on nearly all U.S. goods ⁠and to significantly boost purchases of U.S. goods like natural gas. Live Events Cheng, ​who led the talks with the U.S., said the government ​has been in touch already with Washington, though did not say with whom. "I think our contacts so far have also been positive. The U.S. side understands that this is an agreement that benefits both sides. I believe we can achieve this objective, and we are confident that we can do so," she told reporters, referring to ‌last month's Agreement on Reciprocal Trade, or ART. This is not a reopening of negotiations, and Taiwan will seek to actively engage with ​the U.S. ​side to understand how Taiwanese ⁠companies will continue to receive the best treatment possible under that deal even as the U.S. looks at other tariffs, Cheng added. Countries that have already signed agreements with ​the U.S. should have a "relatively advantageous foundation when facing any future alternative tools the U.S. might adopt through new legal avenues", she said. Preferential tariff treatment for Taiwan's semiconductor exports already agreed with the U.S. will also not change, but Taiwan's high trade surplus with the United States is a risk going forward, Cheng added. (You can now subscribe to our Economic Times WhatsApp channel)

**Countries:** Taiwan, United States

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