Taiwan has reached a trade agreement with the US, committing to a multibillion-dollar investment in American chip manufacturing in exchange for reduced tariffs, the Commerce Department announced Thursday. As part of the trade deal, Taiwanese companies will invest at least $250 billion in building out advanced semiconductor, energy and AI capacity in the US. …In return, the U.S. will cap its “reciprocal” tariff on Taiwanese goods, including auto parts, lumber, timber and wood products, to 15%. Import taxes on generic drugs, aircraft parts and certain unavailable natural resources will also be reduced to zero percent. Commerce Secretary Howard Lutnick said Thursday the goal is for the US to “become self-sufficient in the capacity of building semiconductors.” Taiwanese companies investing in US chip production will also be exempted from some future Section 232 tariffs.