Breaking down the strategic implications of the 15% tariff framework of the US-Taiwan trade deal
The United States and Taiwan formalized a significant trade and investment agreement on January 15, 2026, establishing a new framework for bilateral economic relations. The deal creates a 15% cap on reciprocal tariffs for Taiwanese exports—a move designed to stabilize trade costs amid rising US protectionism—while securing a massive US$500 billion capital commitment from Taiwan to bolster US manufacturing. While the agreement text outlines the mechanisms for tariffs and investment, recent comments from US Commerce Secretary Howard Lutnick provide essential context regarding the US administration’s strategic objectives. Credit: Digitimes Part I: The Terms of the Agreement The agreement is built








