Name: US, Taiwan Reach Deal to Cut Tariffs, Boost Chip Investment
Uploaded: 2026-01-16T15:12:07.000Z
Duration: 6 min 40 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Adverbs of degree

Mike, first I want to just get your thoughts on this breaking news that we're seeing cross.

I know you haven't really gotten a chance to see it until we have, but

Basic passive voice

the President is said to lower tariffs to 15% on goods from Taiwan.

Taiwan pledging $250 billion each in chip investment credit guarantees.

Well, this is a deal that has been taking shape for months between the self-governed island and the United States.

It's been a top priority for officials there in Taipei, but also here in Washington

because Taiwan is such a crucial source of the chips that go into artificial intelligence and AI data centers across the US and around the world.

And they wanted to make sure they get this locked into place and that they can have some assurance that supply lines to the island are really in a good place

and that the island feels like it is on par with its regional neighbors Japan and South Korea, which also have been a big source of electronics,

including chips to the US but have already agreed to trade pacts with the Trump administration.

Now under this, we've reported previously that the deal would include - it's not in the White House memo, but

we reported earlier this week that the deal would include Taiwan Semiconductor Manufacturing Co.

Agreeing to build as many as four additional plants beyond the six factories that it has promised to build here in the US over the next several years,

So we're talking about a lot of investment here, Tim.

And this is something that officials in Taiwan have been looking for, but

it runs the risk, of course, of antagonizing China.

Yeah, we're getting some more information on this.

The US and Taiwan agreeing to a trade agreement that would lower tariffs on goods from Taiwan to 15%

and see TSMC increase financing for American operations.

Taiwan's well, I should say Taiwanese semiconductor companies.

Taiwan's tech industry would commit to making at least $250 billion in direct investments to expand semiconductor energy and AIOps in the US

and provide, Carol, an additional $250 billion in credit guarantees.

You know, Mike, I wonder, like I think about the US And China, man,

this is like, you know, frenemies to the, you know, 10th degree or whatever you want to call it.

I think it's in April that that's supposed to happen, but

I think about that and this what's happening, you know, this deal with Taiwan and not looking to maybe antagonize China.

But then you've also got, we kicked off in the introduction to you that the US is convening dozens of foreign ministers from allied countries next month

to look into and pursue an agreement designed to help reduce their dependencies on Chinese critical minerals.

I mean, this relationship, as I feel like the US, China, Europe,

these regions are trying to make sure they have an access to raw materials, critical minerals for their own national security.

Well, the Taiwan trade deal and the agreements that have been forged with trading partners around the world

and this effort to try to lock down rare earth supplies outside China really just show the competition between the world's two largest economies, the US and China, and

just how officials in Washington and Beijing are -

while they are trying to work together, they are really in competition with each other just as much.

And they are each trying to gain an advantage, not only economically in the broad sense, but

very specifically when it comes to these areas of advanced technology,

especially artificial intelligence and all the ingredients like advanced semiconductors and yes, the rare earths that help to produce them.

You know, the other tricky relationship, Mike, as you know, is US And Europe right now are US and its NATO allies.

So I'm just curious what you make or the significance of the US looking to meet with its allies kind of against China when it comes to critical minerals.

Like, I need this massive whiteboard to understand the things that people get along with geopolitically

and that they don't get along with the same people or same countries.

Well, Carol, I think we all need that massive whiteboard to follow all the ebbs and flows in the saga

and especially with Europe, the idea that they would try to convene all of these ministers from so many countries comes at a curious time

because of all the tensions over the US Interest in taking control of Greenland

Yes, I'm glad you mentioned this, because that's exactly where my head was going.

And Tim, that really is the stakes of the game.

When it comes to Greenland, the US has in mind the rare earths and critical minerals deposits there as something that could be extracted.

It's, of course, also a strategic security play when it comes to the military angle.

But you cannot overlook at all just what it means in terms of rare earths and the conversation right now.

Is this the, and you know, is this the quote, "art of the deal" at work here,

where the US and the Trump administration sort of goes to the most extreme measure for something it wants.

And then the deal that ends up being struck is something that is much more benign, something that's much more, much more traditional.

And that's another question, Tim, that we are struggling to answer right now.

And I think even officials on both sides of the Atlantic are trying to get their heads around what is the end game for the President and his closest advisers?

There are certainly some who simply want to acquire Greenland by force if necessary, but

Now, of course, if you ask officials from Denmark and from Greenland, the answer is a resounding no.

They wouldn't be opposed to expanding the strategic and business partnership and ties that they have with the US but not under those terms.

It's unclear, though, just what the extent of this deal making is.

There was a meeting on Monday with some German officials walked away really uncertain and a bit dismayed by what they heard from Trump officials

and the Danish when they were here to talk about Greenland later in the week.

This week, they too, came away with the sense that there remain fundamental differences between their government's view and the and the US.

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US, Taiwan Reach Deal to Cut Tariffs, Boost Chip Investment

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