U.S. and Taiwan agree on lower tariffs and $250B in chip investments, sparking Chinese opposition.

The U.S. and Taiwan have reached a trade agreement lowering tariffs on Taiwanese goods to 15% and committing $250 billion in Taiwanese investments in U.S. semiconductor manufacturing, aiming to strengthen supply chain resilience. China strongly opposes the deal, calling it a violation of the one-China principle and warning of firm responses to any actions supporting Taiwan’s de facto independence. The agreement reflects growing U.S.-Taiwan economic cooperation amid geopolitical tensions and global efforts to diversify chip production.