US and Taiwan reach trade deal, with semiconductor chips and China in focus

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

The deal deepens the Trump administration’s ties with Taipei at a critical time as China ratchets up pressure on the island, which it views as its own, and Washington has worked to avoid an all-out trade war with Beijing.