Taiwan’s premier on Friday praised a new trade agreement with the United States, saying the deal brings Taiwan’s tariffs down to 15% and reflects what he described as U.S. recognition of Taiwan as a strategic partner, as China’s foreign ministry objected to the accord in Beijing.
Cho Jung-tai said Taiwan had secured what he called the “best tariff deal” available to countries that run trade surpluses with the U.S., and he linked the outcome to Taiwan’s negotiations. He said Taiwan’s goal was “to lower mutual tariffs,” and he argued that Taiwan obtained 15% tariffs with no added fees as a result of the talks.
In Beijing, China’s foreign ministry spokesperson Guo Jiakun condemned the agreement when asked during a routine news briefing, saying that China “always firmly opposes” countries having diplomatic relations with China and “China’s Taiwan region” and signing agreements that carry “sovereign connotations” and an official nature with the Taiwan region.
The agreement also marks a shift from a higher starting tariff level. The AP report said Trump initially set the tariff at 32% on Taiwanese goods before changing it to 20%, and then the new accord reduced it further to 15%.
The U.S. Department of Commerce said the deal would establish an economic partnership aimed at creating “several world-class U.S.-based industrial parks” and cited the agreement’s tariff and investment terms. In a statement, the department called it “a historic trade deal that will drive a massive reshoring of America’s semiconductor sector.”
Cho said the 15% tariff rate applied to Taiwan’s automotive and wood furniture industries, and he said some components used in the aerospace industry would face no tariffs under the deal. He also said the agreement would need ratification by Taiwan’s parliament, where opposition lawmakers raised concerns about its potential impact on the island’s domestic semiconductor industry.
The timing of the trade deal coincided with TSMC’s announcement that it would increase capital spending by as much as nearly 40% in 2026. TSMC also reported a 35% jump in net profit for its latest quarter, attributing the gains to demand linked to artificial intelligence, and it said it pledged around $165 billion of investments in the United States and is speeding up construction of new plants in Arizona.
A trade official, Ryan Majerus, who previously worked in Trump’s first administration and later in the Biden administration, said the agreement’s “timing is interesting,” while noting it came amid a legal backdrop for broader U.S. tariff policy. The AP report said the Supreme Court had not yet ruled on the legality of Trump’s sweeping tariffs and that the justices could strike down those tariffs as early as that month.
For Taiwan, the deal arrived while it continued to face pressure from China, which claims democratically governed Taiwan as part of its territory. Majerus said Taiwan’s desire to solidify ties with the United States also played a role in reaching the accord.