The United States and Taiwan have signed a trade deal that could change the future of technology across the world. The main reason being the massive $500 billion commitment aimed at strengthening the US tech industry, especially computer chips, which power everything from smartphones and cars to artificial intelligence. The agreement cuts US tariffs on Taiwanese goods and, in return, brings huge Taiwanese investments into American factories, research labs, and industrial parks. A deal born from tariffs and tension The agreement comes after months of tariff negotiations led by the Trump administration who last year announced wide-ranging tariffs to fix what he called unfair trade imbalances. Taiwan was initially hit with a proposed 32 per cent tariff, which was later reduced to 20 per cent.