Taiwan and the US have entered the final stages of a tariff agreement where tariff rate is set to drop from about 20% to 15%, aligning with rates for Japan and South Korea. In exchange, TSMC must commit to building at least five additional fabs.
The agreement reflects the Trump administration's broader strategy of using tariffs as leverage to reshore high-tech manufacturing and reduce US dependence on overseas supply chains. Since imposing broad tariffs in 2025, the administration has selectively lowered rates for countries willing to commit large-scale investments aligned with US national security priorities.
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