Taiwan President Lai Ching-te said tariff negotiations with the United States was a “very important opportunity" for Taiwanese companies to expand globally after signing a trade deal with the United States, during a news conference on Friday (February 13).

While speaking to reporters at the presidential office in Taipei, Lai said it is up to businesses to decide where best to spend the US$250 billion Taiwan has pledged in investments in the United States but their largest production capacity will remain at home.

"Whether it is TSMC or other industries, as long as their research and development centres are in Taiwan, their advanced manufacturing processes are in Taiwan, and their largest production capacity is in Taiwan, Taiwan can continue to develop steadily," Lai said when asked whether TSMC's investments in the U.S. would risk hollowing out Taiwan's industry.

Lai mentioned Taiwan’s reciprocal tariff will be reduced to 15% from the 20% initially imposed by U.S. President Donald Trump. The deal put Taiwan on an equal footing to its closest Asian export competitors South Korea and Japan, he added.

Moreover, more than 2,000 Taiwan products, including Phalaenopsis orchids and bubble tea ingredients, will be exempted from reciprocal tariffs. This will reduce the average tariff when imported into the United States to 12.33%, Lai said.