The results of the U.S.-Taiwan tariff negotiations have been announced. Reciprocal tariffs have been reduced to 15%, without additional stacking on the Most Favored Nation (MFN) rates. This creates relatively favorable competitive conditions for Taiwan’s export industries. Da-Nien Liu, Director of the Regional Development Study Center at the Chung-Hua Institution for Economic Research (CIER), notes that this outcome helps position Taiwan’s products on a more level competitive playing field with major economies such as Japan, South Korea, and the European Union. It is particularly significant for industries that previously faced higher tariff pressures.
However, the U.S. side has simultaneously signaled expectations for Taiwan’s semiconductor supply chain to increase investment in the United States, indicating that structural requirements regarding market opening and investment commitments remain embedded within the tariff negotiations. Director Liu analyzes that the United States has historically focused its negotiations with major trading partners on expanding market access, increasing investment commitments, and raising procurement levels. Taiwan’s relevant industries must prepare early for the adjustment pressures associated with market opening.
Furthermore, substantial investment commitments to the United States have triggered discussions regarding industrial deployment and risk diversification. Excessive concentration of investment in a single market may elevate supply chain and operational risks, while execution timelines and capital allocation present additional challenges. As the scale of semiconductor investment in the United States expands, talent outflow and workforce supply have emerged as critical issues. The government must concurrently review talent cultivation and educational systems to ensure long-term industrial competitiveness.
Director Liu emphasizes that within the framework of promoting bilateral investment, Taiwan should continue strengthening economic and trade cooperation with the United States while also seeking expanded U.S. investment in Taiwan beyond the semiconductor sector. This approach would promote balanced industrial development and reduce dependence on a single market.
Author: CIER Editorial Team
Date: January 27, 2026