Taiwan Seeks Tariff Cuts and Investment Deal in High-Level U.S. Talks

Senior Taiwanese officials are traveling to Washington this week to push forward negotiations with the United States aimed at reducing U.S. tariffs on Taiwanese exports and potentially finalizing a new investment agreement, according to people familiar with the matter. The discussions come as Taiwan looks to strengthen its economic ties with Washington amid ongoing geopolitical tensions in the region.

Taiwan’s Vice Premier Cheng Li-chiun and Trade Envoy Yang Jen-ni are expected to arrive in Washington by Thursday, where they will meet with officials from the Trump administration. Sources told Reuters that an announcement related to the talks could come by the end of the month, signaling potential progress on long-standing trade issues between the two sides.

Taiwan has been seeking to lower tariffs on its exports to the United States from 20% to 15%, a goal the government publicly outlined in December. Earlier this week, Taipei said it had reached a “broad consensus” with Washington on the framework of the negotiations and was discussing a timetable for a final meeting to conclude the talks. However, Taiwanese officials declined to comment specifically on the Washington meetings.

The White House did not respond to requests for comment, and it remains unclear which U.S. officials are participating in the discussions. Bloomberg News first reported the meetings.

As a global leader in semiconductor manufacturing, Taiwan has emphasized its strategic importance in the tech supply chain. Officials have said their proposal to the U.S. includes assistance in replicating Taiwan’s successful model of building advanced technology clusters around dedicated science parks. As part of the potential deal, Taiwan Semiconductor Manufacturing Company (TSMC) is expected to commit to building additional facilities in Arizona, according to sources familiar with the talks.

TSMC has so far declined to confirm whether it will expand its U.S. investment beyond the $165 billion already pledged. Notably, Taiwanese semiconductor exports are currently not subject to U.S. tariffs.

The talks also carry geopolitical significance. China claims Taiwan as its territory and has not ruled out the use of force, a stance firmly rejected by Taipei. While the United States does not maintain formal diplomatic relations with Taiwan, it remains the island’s most important international supporter and is legally obligated to help provide for its defense, making trade negotiations closely watched in the broader context of U.S.-China relations.