Taiwan-US Tariff Deal Hinges on TSMC's Chip Expansion Plans

On Tuesday, the Cabinet remained silent regarding reports of a potential deal between the United States and Taiwan aimed at reducing import tariffs on Taiwanese products to 15%. This agreement, which would align Taiwan's tariff standings with those of Japan and South Korea, stems from Taiwan Semiconductor Manufacturing Co.'s (TSMC) proposed expansion in the US, reportedly constructing five additional foundries in Arizona.

Cabinet spokesperson Michelle Lee acknowledged a "broad consensus" had been reached with the US, but details on final discussions and any official announcements are pending. The key objectives in negotiations are reciprocal tariff reductions and preferential treatments under Section 232, Lee emphasized.

As the US considers national security tariffs on semiconductors under Section 232, TSMC has yet to comment but is expected to discuss this at an investor conference on Thursday. While President Trump's administration currently imposes a 20% tariff on Taiwanese goods, semiconductors remain untariffed until further investigation.