Taiwan Hails 'Best' Trade Deal With US 01/16 06:27

   

   TAIPEI, Taiwan (AP) -- Taiwan's premier on Friday hailed a new trade deal 
with the United States as the "best tariff deal" enjoyed by countries with 
trade surpluses with Washington, as meanwhile a Chinese official in Beijing 
condemned the accord.

   The agreement cuts U.S. tariffs on Taiwanese goods to 15% in exchange for 
$250 billion in new investments in the U.S. tech industry. It is comparable to 
deals with the European Union and Japan worked out after President Donald Trump 
proposed sweeping tariffs for many U.S. trading partners.

   "For the time being, we obtained the best tariff deal enjoyed by the 
countries with trade surplus with the U.S.," said Taiwan Premier Cho Jung-tai. 
"This also shows that the U.S. sees Taiwan as an important strategic partner."

   "Our goal is to lower mutual tariffs" Cho said. "Therefore, according to the 
results of the negotiations, Taiwan has successfully obtained 15% in tariffs 
with no added fees. This is the same tariff imposed on Japan, Korea and the 
European Union."

   Trump initially had set the tariff at 32% on Taiwanese goods but later 
changed it to 20%.

   China claims independently governed Taiwan as its territory, and in Beijing, 
a Foreign Ministry spokesperson slammed the agreement when asked at a routine 
news briefing.

   "China always firmly opposes countries having diplomatic relations with 
China and China's Taiwan region signing any agreement that carries sovereign 
connotations and an official nature with China's Taiwan region," said Guo 
Jiakun.

   The U.S. Department of Commerce said the deal with Taiwan would establish an 
economic partnership to create several world-class U.S.-based industrial parks 
to help increase domestic manufacturing. It's "a historic trade deal that will 
drive a massive reshoring of America's semiconductor sector," the department 
said in a statement.

   Cho said Taiwan had secured 15% tariffs with no additional fees for the 
automotive and wood furniture industries, and no tariffs for some components 
used in the aerospace industry.

   The agreement must be ratified by Taiwan's parliament, where opposition 
lawmakers have expressed concern about the potential impact on the island's 
domestic semiconductor industry.

   It coincided with an announcement by Taiwan-based TSMC, the world's largest 
computer chip maker, that it plans to increase its capital spending by as much 
as nearly 40% this year. It reported a 35% jump in its net profit for the 
latest quarter thanks to the boom in artificial intelligence.

   TSMC has pledged around $165 billion of investments in the U.S. and said 
it's speeding up construction of new plants in Arizona, looking to create a 
fabrication plant cluster and meet strong demand from clients.

   The Commerce Department said that Taiwanese semiconductor producers that 
invest in the U.S. also will get favorable tariff treatment, including 
exemptions.

   Ryan Majerus, a trade official in Trump's first administration and in former 
President Joe Biden's, said the agreement's "timing is interesting.''

   The Supreme Court has yet to rule on the legality of Trump's most sweeping 
tariffs, which he has used to strong-arm concessions out of other U.S. trading 
partners. The justices could strike down the tariffs as early as this month.

   But Taiwan, facing ongoing threats from China, was eager to reach a deal and 
strengthen relations with the United States anyway. "Wanting to solidify things 
with the U.S. probably played a big role here,'' said Majerus, now a partner at 
the King & Spalding law firm.