US and Taiwan clinch trade deal that will lower tariffs to 15%

The US and Taiwan have been reported to reach a trade agreement that will lower tariffs from 20% to 15%. This deal is set to be signed today and entails a commitment of $500 billion from Taiwan. Half of this commitment will go towards direct investment in US manufacturing, while the other half will consist of credit guarantees for additional investments. AI firms like TSMC have committed to channeling $250 billion toward investments in semiconductor fabs in Arizona, thus enhancing the semiconductor landscape. A quota system is also being established for chip exports to ensure effective tariff reductions. This agreement is expected to have a positive impact on the economic relations between Taiwan and the US, potentially boosting market confidence.