The United States and Taiwan reached a trade deal on Thursday (January 15, 2026) that cuts tariffs on Taiwanese goods in exchange for $250 billion in new investments in the U.S. tech industry. Mr. Trump also has a one-year trade truce with China to stabilise ties with the world's second largest economy. Mr. Trump initially set the tariff at 32% on Taiwanese goods but later changed it to 20%. Taiwan's executive branch said the island's companies would specifically invest $250 billion in industries such as semiconductors, artificial intelligence applications and energy. TSMC said it plans to boost its capital expenditure budget to $52 billion-$56 billion for 2026, up from about $40 billion last year.

Source: The Hindu January 16, 2026 02:02 UTC