The US announced a major deal with Taiwan to cut tariffs on Taiwanese goods from 20% to 15%. This applies to general products and specific tariffs on auto parts, timber, lumber, and wood products. The US Commerce Department said this "will drive a massive reshoring of America’s semiconductor sector." Taiwanese semiconductor and tech companies will invest at least $250 billion in the US to expand capacity in chips and artificial intelligence. Taiwan will also provide credit guarantees of at least $250 billion to support these investments. Though unnamed in the announcement, the deal strongly affects TSMC, the world's largest chip maker. US Commerce Secretary Howard Lutnick told CNBC that TSMC has bought hundreds of acres in Arizona for expansion. He stated, "They just bought hundreds of acres adjacent to their property. Now I’m going to let them go through it with their board and give them time." Taiwanese firms building chip operations in the US will get favorable treatment regarding any future semiconductor duties. Lutnick said, "The objective is to bring 40% of Taiwan’s entire supply chain and production, to domestically bring it into America. We’re going to bring it all over, so we become self-sufficient in the capacity of building semiconductors." The deal follows months of talks and is part of Taiwan’s push to increase US investments and defense spending. Taiwan leads in semiconductor manufacturing, vital to the global tech economy. In 2024, Taiwan had a $74 billion trade surplus with the US, with over half its exports being information and communication tech products, including semiconductors.