The United States said Thursday that it has signed a deal with Taiwan to reduce tariffs on goods from the democratic island, while increasing Taiwanese semiconductor and tech companies’ investments in America.The agreement, the US Commerce Department said, “will drive a massive reshoring of America’s semiconductor sector.”Under the deal, Washington will lower tariffs on Taiwanese goods to 15 percent, down from a 20 percent “reciprocal” rate meant to address US trade deficits and practices it deems unfair.Taiwanese Premier Cho Jung-tai praised negotiators on Friday for “delivering a well-executed home run”.”These results underscore that the progress achieved so far has been hard-won,” Cho said.Sector-specific tariffs on Taiwanese auto parts, timber, lumber and wood products will also be capped at 15 percent, while generic pharmaceuticals and certain natural resources will face no “reciprocal” duties, the US Commerce Department added.Meanwhile, Taiwanese chip and tech businesses are set to make “new, direct investments totalling at least $250 billion” in the United States to build and expand capacity in areas like advanced semiconductors and artificial intelligence, the department said.Taiwan will also provide “credit guarantees of at least $250 billion to facilitate additional investment by Taiwanese enterprises,” the department said adding that this would support the growth of the US semiconductor supply chain.Taiwan’s government said the new tariff will not stack on top of existing duties, which had been a major concern for local industries.”Of course it’s good that the reciprocal tariff has been lowered to 15 percent — at least it puts us on par with our main competitors South Korea and Japan,” said Chris Wu, sales director for Taiwanese machine tool maker Litz Hitech Corp. But, given the company’s single-digit profit margins, “there is no way we can absorb the tariff” for US customers, he said. The department’s announcement did not mention names, but the deal has key implications for Taiwanese chipmaking titan TSMC, the world’s biggest contract maker of microchips used in everything from Apple phones to Nvidia’s cutting-edge AI hardware.In an interview with CNBC, Commerce Secretary Howard Lutnick said TSMC has bought land and could expand in Arizona as part of the deal.”They just bought hundreds of acres adjacent to their property. Now I’m going to let them go through it with their board and give them time,” he said.TSMC did not immediately respond to a request for comment.Taiwanese producers who invest in the United States will also be treated more favorably when it comes to future semiconductor duties, the Commerce Department said.Firms building new US chip capacity may import up to 2.5 times their planned capacity without paying sector-specific duties during construction. The quota lowers to 1.5 times once projects are completed.A day prior, US officials held off imposing wider chip tariffs, instead announcing a 25 percent duty on certain semiconductors meant to be shipped abroad — a key step in allowing Nvidia to sell advanced AI chips to China.Ryan Majerus, a former US trade official, told AFP that although chip tariffs are currently narrowly targeted, Washington “signaled there is certainly potential for it to grow.”Majerus, now a partner at law firm King & Spalding, added that the deal had parallels to those with other US partners. The European Union and Japan, for example, both also secured a 15-percent tariff rate.- ‘Self-sufficient’ -“The objective is to bring 40 percent of Taiwan’s entire supply chain and production, to domestically bring it into America,” Lutnick told CNBC.”We’re going to bring it all over, so we become self-sufficient in the capacity of building semiconductors,” he added.The agreement comes after months of negotiations.Taiwanese President Lai Ching-te had pledged to boost investments in the United States and increase defense spending as his government tried to lower US duties, and avoid a toll on its semiconductor chip exports.Taiwan is a powerhouse in the manufacturing of semiconductor chips, which are the lifeblood of the global economy, as well as other electronics.But US President Donald Trump previously accused Taiwan of stealing the US chip industry, and his administration had made clear it wants more of the critical technology made on American soil.Taiwan’s trade surplus in goods with the United States was around $74 billion in 2024. More than half of its exports to the United States are information and communications technology products — including semiconductors.

Venezuelan opposition leader Maria Corina Machado said Thursday she “presented” her Nobel Peace Prize medal to Donald Trump, in a bid to win over the US president who had sidelined her since overthrowing Nicolas Maduro.Her “wonderful gesture of mutual respect,” as Trump called it Thursday, comes after the Republican said the award should have gone to him instead — and after he refused to back Machado following the January 3 US military operation to capture Maduro.”He deserves it, and it was a very emotional moment,” Machado later told broadcaster Fox News in an interview.Despite the gesture, Trump has backed Maduro’s vice president Delcy Rodriguez over Machado — so long as she toes Washington’s line, particularly on access to Venezuela’s vast oil reserves.”I presented the president of the United States the medal of the Nobel Peace Prize,” Machado told reporters outside the US capitol, where she met with lawmakers after having lunch with Trump at the White House.Machado, 58, said it was “recognition for his unique commitment with our freedom.”It was not immediately clear if Trump actually kept the award following the closed-door meeting.The Norwegian Nobel committee says its prizes cannot be transferred.- ‘Not afraid’ – Trump had campaigned hard to win last year’s Nobel Peace Prize for what he says are his efforts to stop eight wars.Instead it went to Machado, who appeared in Oslo last month to collect her prize — following a daring escape from Venezuela by boat — and then dedicated it to Trump.Venezuela’s opposition has argued and presented evidence that Maduro stole the 2024 election from the candidate of Machado’s party, Edmundo Gonzalez Urrutia — claims supported by Washington.But Trump has said that Machado does not have enough support among Venezuelans, and opted to stick with former Maduro loyalist Rodriguez.Trump and Rodriguez had their first telephone call on Wednesday and the White House said Thursday he “likes what he’s seeing” with Venezuela’s interim leaders.Rodriguez said however that Thursday her government was “not afraid” of a diplomatic clash with Washington.”We know they are very powerful. We know they are a lethal nuclear power…we are not afraid to confront them diplomatically, through political dialogue,” said Rodriguez.Rodriguez was delivering Maduro’s state of the nation address to parliament while the toppled Venezuelan leader is in a New York jail facing drug trafficking charges.By contrast Machado, who campaigned for years to end leftist Maduro’s rule, was greeted by jubilant supporters as she left the White House.White House Press Secretary Karoline Leavitt said as the lunch started that Machado was a “remarkable and brave voice for many of the people of Venezuela.”But while Leavitt said Trump was “committed to hopefully seeing elections in Venezuela one day,” she would not give a timeline.- Sixth tanker seizure -Since Maduro’s capture, Trump has said the United States will “run” Venezuela — exerting pressure through a naval blockade and threats of further attacks — but has appeared content to let Rodriguez remain in power so long as oil keeps flowing.US forces on Thursday seized a sixth oil tanker in its campaign to control the South American country’s critical fossil fuel sector.Separately, the first US-brokered sale of Venezuelan oil, worth around $500 million, has been finalized, a US official told AFP on Thursday without identifying the buyer.Rodriguez in her speech also announced plans for legal reforms to Venezuela’s oil sector — which currently limit the involvement of foreign entities — but did not give specific details.Washington has also hailed the release of dozens of political prisoners in the past week, though hundreds remain behind bars.Meanwhile the shockwaves from the lightning US raid that toppled Maduro continue to reverberate.Cuba paid tribute on Thursday to 32 soldiers killed in the operation, some of whom had been assigned to Maduro’s protection team, in a ceremony attended by revolutionary leader Raul Castro.burs-dk/sla/jgc