The US claims it just strongarmed Taiwan into spending $250 billion on American chip manufacturing

"The US just lowered Taiwan's tariffs in exchange for a massive domestic chipmaking promise, the Commerce Department announced on Thursday. Under the deal, tariffs on goods from Taiwan will decrease from 20 to 15 percent, while Taiwanese technology companies will invest $250 billion into building and expanding chipmaking facilities in the US, supported by at least $250 billion in credit offered by Taiwan's government."

"The deal also states that Taiwanese companies building US-based chipmaking factories can import up to 2.5 times the planned capacity without paying extra tariffs "during the approved construction period." Once construction is complete, the companies can import 1.5 times their US production capacity, tariff-free. The US will also eliminate reciprocal tariffs on generic pharmaceuticals, their ingredients, aircraft components, and certain natural resources."

"Last year, President Donald Trump threatened to impose a 100 percent tariff on chips and semiconductors not made in the US, something that Commerce Secretary Howard Lutnick tells CNBC is still on the table. "That's what they get if they don't build in America, the tariff's likely to be 100 percent," Lutnik says. Trump also began imposing a 25 percent tariff that will allow the US government to take a cut of Nvidia and AMD's advanced AI chip sales in China."

The United States reduced tariffs on Taiwanese goods from 20% to 15% while securing a commitment of $250 billion from Taiwanese technology companies to build and expand chipmaking facilities in the U.S., supported by at least $250 billion in Taiwanese government credit. The agreement allows phased tariff-free imports tied to construction and production capacity and removes reciprocal tariffs on certain pharmaceuticals, aircraft components, and natural resources. Political pressure and the threat of higher tariffs, including a potential 100% tariff on non-U.S. chips, figure prominently in enforcement and incentive mechanisms. Major firms like TSMC are central to the investment plans.

Read at The Verge