Taiwan-focused business groups have welcomed the announcement of a new trade
arrangement that lowers tariffs and expands bilateral investment between the
United States and Taiwan.

The US-Taiwan Business Council said the deal, which reduces Taiwan's baseline
tariffs from 20 percent to 15 percent, will align it with levels granted to
Japan and South Korea.

The council's president, Rupert Hammond-Chambers, described the agreement as
"historic," saying it would significantly deepen trade and technology ties,
particularly in the semiconductor sector.

Hammond-Chambers stressed that expanded US chip production shouldn't be seen
as replacing Taiwan's leadership in the sector, noting that next-gen fabs
will still be set up here before being replicated in the US.

Under the agreement, Taiwan semiconductor and technology firms are expected
to make at least US$250 billion in direct investments in the United States,
with an another US$250 billion in credit guarantees to facilitate additional
investments.

AmCham also welcomed the deal, saying it provides greater clarity and
predictability for companies operating across the US-Taiwan economic
corridor.

Both organizations urged Congress to pass the US-Taiwan Agreement on
Avoidance of Double Taxation, warning that the current tax framework
discourages cross-border investment and could limit the agreement's
effectiveness.

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