U.S.-Taiwan business groups back trade deal, urge double-tax pact

Taipei, Jan. 16 (CNA) U.S.-Taiwan business groups on Friday welcomed the announcement of a new U.S.-Taiwan trade arrangement that lowers tariffs and expands bilateral investment, while urging Washington to pass a long-delayed agreement to avoid double taxation.

The U.S.-Taiwan Business Council (USTBC) said the deal, announced by the U.S. Department of Commerce, would reduce Taiwan's baseline tariffs from 20 percent to 15 percent, aligning them with levels granted to Japan and South Korea.

USTBC President Rupert Hammond-Chambers described the agreement as "historic," saying it would significantly deepen trade and technology ties, particularly in the semiconductor sector.

"The dynamic between American chip designers such as Nvidia and AMD and Taiwan Semiconductor Manufacturing Company (TSMC) may be the most important commercial economic partnership in the global economy," Hammond-Chambers said in a statement, adding that the deal would "turbocharge that web of relationships."

He stressed that expanded U.S. chip production should not be seen as replacing Taiwan's leadership in the sector.

"Leading-edge chip production will still be developed in Taiwan, and its next-generation fabs will still be rolled out on the island before being replicated in the States," he said.

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.

The American Chamber of Commerce in Taiwan (AmCham Taiwan) also welcomed the deal, saying it provides greater clarity and predictability for companies operating across the U.S.-Taiwan economic corridor.

"The announced reduction in Taiwan's baseline tariffs, along with provisions tied to investment and supply-chain cooperation, is a constructive step toward reducing uncertainty," AmCham Taiwan Chairperson Anita Chen (陳幼臻) said in a separate statement.

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

They said swift legislative action would help accelerate capital deployment, support supply-chain resilience, and deliver tangible benefits to businesses and workers on both sides.