The United States’ reciprocal tariffs will likely be reduced to 15% for Taiwan as a bilateral trade agreement is nearing completion, according to the New York Times. This Tuesday, Cabinet spokesperson Michelle Lee (李慧芝) announced that both sides reached a “general consensus” on the main issues and are scheduling further meetings.

The U.S. has imposed 20% tariffs on Taiwan for nearly six months since the Trump administration’s reciprocal tariffs first took effect in August 2025. The New York Times reports that TSMC will increase U.S. investment by building at least five additional factories as part of the deal to lower the tariffs to 15%.

Lee explained that bilateral trade negotiations have prioritized reducing reciprocal tariffs without stacking them, and securing preferential treatment for semiconductors under the legal provision Section 232.

Spokesperson Lee said, “Currently, both sides are scheduling a conclusive meeting. We will make an announcement once this is confirmed. Following the fifth round of in-person meetings between Taiwan and the U.S., Taiwan will negotiate supply chain cooperation with the U.S. Department of Commerce over video conferences and through written document exchanges. We will also request support from the U.S. in obtaining access to land, water and electricity, visas, and simpler administrative processes to create a more favorable investment environment for Taiwanese companies.”

Following the conclusive meeting, Lee says the government will submit the agreement and an impact assessment to the Legislature for review.