Taipei: 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.

According to Focus Taiwan, the U.S.-Taiwan Business Council (USTBC) stated that 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 highlighted the agreement's significance, particularly in strengthening trade and technology ties in the semiconductor sector.

Hammond-Chambers emphasized the cooperation between American chip designers such as Nvidia and AMD and Taiwan Semiconductor Manufacturing Company (TSMC) as a critical economic partnership. He noted that the deal would enhance these relationships without undermining Taiwan's leadership in chip production, as Taiwan will continue to develop leading-edge chips.

The agreement outlines expectations for Taiwan semiconductor and technology firms to make at least US$250 billion in direct investments in the United States, with an additional US$250 billion in credit guarantees to support further investments.

The American Chamber of Commerce in Taiwan (AmCham Taiwan) also expressed support for the deal, noting that it provides greater clarity and predictability for businesses operating between the U.S. and Taiwan. AmCham Taiwan Chairperson Anita Chen remarked that the reduction in Taiwan's baseline tariffs and the deal's investment and supply-chain provisions help reduce uncertainty.

Both USTBC and AmCham Taiwan urged the U.S. Congress to pass the U.S.-Taiwan Agreement on Avoidance of Double Taxation. They warned that the current tax framework could discourage cross-border investment and limit the agreement's potential benefits, advocating for swift legislative action to enhance supply-chain resilience and bring advantages to businesses and workers in both regions.