The Globe and Mail reports in its Friday edition that the United States and Taiwan clinched a trade deal on Thursday that cuts tariffs on many of the semiconductor powerhouse's exports and directs new investments into the U.S. A Reuters dispatch to The Globe says the deal deepens the Trump administration's ties with Taipei at a critical time as China ratchets up pressure on the island and Washington has worked to avoid an all-out trade war with Beijing. Under the deal, Taiwanese chipmakers like TSMC that expand U.S. production will get a lower tax rate for semiconductors they import into the U.S. The U.S. will also lower a set of broad tariffs that apply to most other Taiwanese exports to the U.S. from 20 per cent to 15 per cent. Generic pharmaceuticals, aircraft components and "unavailable natural resources" will face a 0-per-cent tariff. In exchange, Taiwanese technology companies, such as TSMC, will make investments totalling at least $250-billion (U.S.) to increase production of semiconductors, energy and artificial intelligence in the U.S. The investment boost in chip production will likely provide more business for TSMC's major suppliers, which include major chipmaking toolmakers, including Applied Materials.