U.S., Taiwan strike deal on tech tariffs risking China's ire

Taiwan stocks might have to grind higher despite AI strength: UBS

The US and Taiwan finalize a trade agreement lowering tariffs on Taiwanese tech exports and establishing a framework for two-way investment. The deal includes significant Taiwanese investments in US sectors and aims to deepen economic ties amid Chinese pressure.

The U.S. and Taiwan clinched a trade deal that cuts tariffs on many of the semiconductor powerhouse's exports, directs new investments in the U.S. technology industry and risks infuriating China.

Randy Abrams, head of Taiwan research at UBS, says TSMC's strong outlook for 2026 is a positive signal for the Taiwanese market and the US-Taiwan trade deal removes some of the investment uncertainty. However, swing factors, such as AI-native companies' ability to monetize their services and potential recession risks, could moderate any potential upside to the market.

Did the US and Taiwan reach a trade deal?

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U.S., Taiwan strike deal on tech tariffs risking China's ire

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