Trade Agreement Overview - The U.S. and Taiwan have reached a trade and investment agreement that caps tariff rates on imports from Taiwan at 15% [1] - The agreement includes reciprocal duties on goods from Taiwan and sector-specific levies on items such as auto parts, timber, and wood derivative products [2] Tariff Details - The previous reciprocal tariff on goods from Taiwan was 20%, imposed by the Trump administration [4] - A zero percent reciprocal tariff will be applied to generic pharmaceuticals, aircraft components, and unavailable natural resources [2] Implementation Timeline - No specific timeline has been provided for when the new tariff rates will take effect or when the agreement will be finalized [3] Semiconductor Industry Provisions - Taiwan companies building semiconductor production plants in the U.S. can avoid Section 232 duties on imports up to 2.5 times a site's planned capacity during construction [5] - Companies completing new U.S. chip production projects can import 1.5 times the new production capacity without incurring Section 232 duties [6] Investment Commitments - Taiwan has committed to making $250 billion in direct investments in advanced semiconductor, energy, and artificial intelligence production in the U.S. [7] - Additionally, Taiwan will provide at least $250 billion in credit guarantees to support further U.S. semiconductor supply chain investments [7]