Taipei hails US 15% tariffs ‘home run’ despite fears over US$500 billion cost

South China Morning PostCenter-RightEN 1 min read 100% complete by Lawrence ChungJanuary 16, 2026 at 02:23 PM

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Taiwan secured a deal with the US to reduce export tariffs to 15% after nine months of negotiations, a move Taipei considers a major success. In exchange for the tariff reduction, Taiwan has committed to investing up to $500 billion in the United States. This agreement has sparked concerns in Taiwan regarding the potential hollowing out of its industrial base, particularly the semiconductor sector. Beijing has strongly condemned the deal, viewing it as economic exploitation and interference in its relationship with Taiwan, which it considers a part of China. The Chinese government also criticized Taiwan's ruling party for allegedly succumbing to US pressure.

Key Entities & Roles

Key Player Opposition Context

Japan 40% South Korea 40% Guo Jiakun 50% Zhu Fenglian 50% Democratic Progressive Party (DPP) 60% Beijing ×260% China ×370% United States ×380% Taiwan ×990%

Keywords

us-taiwan trade 90% export tariffs 80% china-taiwan relations 80% economic exploitation 70% industrial base 60% semiconductor sector 60% beijing 50% us investment 50% trade agreement 40%