On January 16, 2026, the Taiwan-US tariff negotiation concluded with a meeting on the 15th Eastern Time. The Executive Yuan of the Republic of China stated that the summary of the Taiwan-US tariff negotiations confirmed several key agreements, including the 15% equivalent tariff not being levied and obtaining the most favorable treatment in Section 232 tariffs for semiconductors and derivative products.
The Taiwan negotiation team led by Deputy Executive Yuan Lai-Chueng Li and Chief Negotiator of the Executive Yuan’s Economic and Trade Negotiation Office, Yang Jenny, held meeting in conjunction with the US negotiation team led by US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer. They witnessed the signing of a Memorandum of Understanding on investment cooperation between the Taipei Economic and Cultural Representative Office (TECRO) and the American Institute in Taiwan (AIT) in the Department of Commerce.
The US Department of Commerce issued a statement highlighting the historic significance of the trade agreement signed between AIT and TECRO, which is expected to drive substantial reshoring of the semiconductor industry to the United States. This unprecedented commitment aims to strengthen the US economy, create high-paying jobs, and enhance national security.
According to the US Department of Commerce, this agreement establishes a strategic economic partnership between the US and Taiwan with the goal of strengthening the US domestic semiconductor supply chain and ensuring US dominance in technology and industry.
Chueng Li and Jenny held a press conference at the ROC Office in the United States to explain the details. Chueng Li emphasized that Taiwan is the first country globally to obtain comprehensive and most favorable treatment regarding potential 232 tariffs imposed by the United States, representing Taiwan as an important semiconductor strategic partner.
The U.S. measures under Section 232 of the Trade Expansion Act of 1962 allow for an investigation to determine if imports of certain products affect US national security. If a threat is determined, the US President has discretion to adjust measures on imported products, including raising tariffs, setting quotas, or implementing other non-trade measures.
On the morning of the 16th, Taiwan’s Executive Yuan Chief announced that the Taiwan-US tariff negotiation goals have been fully achieved. Firstly, Taiwan successfully reduced equivalent tariffs from 32% to 15%, aligning with Japan, South Korea, and the EU. Secondly, Taiwanese companies investing in semiconductors and related products will enjoy the most favorable treatment under Section 232 tariffs. They will also benefit from a 15% non-overlapping tax rate on automotive components, wooden furniture, and zero tariffs on key aviation component materials such as steel, aluminum, and copper.
The collaboration between Taiwan and the US in the supply chain will help Taiwanese companies expand their semiconductor and ICT industries, further solidifying Taiwan-US economic and trade cooperation. Taiwan enterprises are expected to invest approximately $250 billion USD in the US autonomously. Additionally, the government will provide another $250 billion USD in support through state-owned banks and insurance funds, focusing on semiconductor and ICT supply chains to jointly establish industrial clusters with the US, creating a favorable investment environment for Taiwanese enterprises.
He reiterated that Taiwan is said to have a protective mountain, and as long as the main peak remains in Taiwan, it can stand strong in Taiwan, expand globally, and market worldwide.
Lastly, both sides will promote a more balanced Taiwan-US trade by mutually investing in high-tech industries, forming a strategic partnership in the global AI supply chain between Taiwan and the US.
In conclusion, the outcome of the Taiwan-US negotiations signifies a significant achievement for both negotiation teams through their dedication and collaboration, symbolizing a remarkable success that showcases the US’s recognition of Taiwan as a crucial strategic partner. The government will continue to advance the Taiwan-US trade agreement negotiations and submit the finalized agreement to the Legislative Yuan for review as required by law. It calls for bipartisan support for this hard-won accomplishment.
The ROC Executive Yuan released a press statement today, emphasizing the expansion of investment in the US, the establishment of a “two-way investment mechanism,” and the involvement of US financial institutions such as the Export-Import Bank and the Overseas Private Investment Corporation in supporting US private sector investments in Taiwan’s key industries, including semiconductors, artificial intelligence, defense technology, security and surveillance, next-generation communication, and biotechnology industries.
Regarding the crucial contents of the Taiwan-US trade agreement, such as tariffs, non-tariff trade barriers, trade facilitation, economic security, labor rights and environmental protection, and procurement expansion, the Taiwan-US Economic and Trade Working Group stated that further details will be announced upon the signing of the agreement, and the complete agreement text will be submitted to the parliament for review in the future according to legal procedures.