President Donald Trump has eased several import tariffs on goods from Taiwan, marking a partial implementation of a previously negotiated trade agreement between Washington and Taipei.
According to reports from The Straits Times on Thursday, the United States reduced the baseline import tariff imposed on Taiwanese products from 20 percent to 15 percent. Washington also removed derivative tariffs on aluminum, steel, and copper used in aircraft components imported from Taiwan.
In addition, the US government retroactively adjusted sectoral tariffs affecting Taiwanese automotive parts, timber, and wood-derived products. However, American authorities retained the right to reimpose duties if imports are deemed a threat to national security.
The tariff adjustments come as the Trump administration weighs a potential arms sale to Taiwan valued at around US$14 billion, a move that could further strain relations between the United States and China.
Beijing has repeatedly opposed military cooperation between Washington and Taiwan, which China considers part of its territory under the One China principle.
As part of the broader trade arrangement, Taiwan pledged to encourage its companies to increase investment in the US semiconductor industry. Taipei also agreed to expand market access for American exports across several sectors, including industrial products and agriculture.
Taiwan plays a critical role in the global technology supply chain as home to Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker. The company produces semiconductors used in smartphones, artificial intelligence systems, and other advanced technologies for many major US firms.
The latest tariff relief is expected to strengthen economic cooperation between Washington and Taipei at a time when semiconductor supply chains remain central to global strategic competition.
The US has increasingly sought to reduce dependence on overseas chip manufacturing by encouraging foreign technology firms, including Taiwanese companies, to expand production and investment within American territory.
Meanwhile, Taiwan continues to balance its deep economic ties with the US against growing geopolitical tensions with China, which has intensified military and diplomatic pressure on the island in recent years.
