Taiwan Said to Have Trade Deal with United States

Jan. 15, 2026
By: David G. Forgue

The United States Department of Commerce issued a Factsheet on January 15 indicating that a trade agreement had been reached with Taiwan. In line with the imposition of 232 duties on some semiconductor imports, the Taiwan announcement is largely focused on semiconductors and the reshoring of their production to the United States.

The outlines of the deal require Taiwan and Taiwanese companies to invest heavily in semiconductor supply chain, production, and innovation in the United States. It also requires Taiwan to jointly establish “world class industrial parks” in the United States focused on “next-generation technology, advanced manufacturing, and innovation.” Taiwan is also required to facilitate U.S. investment in certain sectors in Taiwan.

In return, (a) reciprocal tariff rates for Taiwan will not exceed 15%, (b) 232 duties on auto parts and timber/lumber/wood derivative products will not exceed 15%, and (c) there will be zero reciprocal tariffs on generic pharmaceuticals, generic ingredients of such generic pharmaceuticals, aircraft components, and some natural resources from Taiwan. In addition, there will be semiconductor duty advantages for Taiwanese companies that have built or are building semiconductor capacity in the United States.

Importers of materials that will be necessary to build massive new industrial parks in the United States should probably start lobbying USTR and Commerce now for targeted tariff reductions (call us and we can talk). In the meantime, if you have any questions about trade with Taiwan now or in the future do not hesitate to call any attorney at Barnes, Richardson & Colburn, LLP.