Name: US, Taiwan Make Deal to Cut Tariffs, Boost Chip Investment | Balance of Power 01/15/26
Uploaded: 2026-01-16T00:57:47+00:00
Duration: 2872 s

Speakers

Michael Shepherd — Tech/Defense Reporter

Romaine Bostick — Anchor, Bloomberg

Rob Nichols — President and CEO, American Bankers Association

Elissa Slotkin — Democratic Senator, Michigan

Dana Stroul — Research Director, Washington Institute for Near East Policy

Olha Stefanishyna — Ukrainian Ambassador to the U.S.

Sanne Wass — Bloomberg Copenhagen Reporter

Skylar Woodhouse — Bloomberg White House Reporter

Joe Mathieu — Host, Bloomberg Radio

Summary

Balance of Power covered a new U.S.-Taiwan trade agreement that cuts tariffs to 15% and secures Taiwanese semiconductor investment in the U.S., including additional TSMC plants. Markets rallied on TSMC's larger capex plan and strong bank earnings, with analysts seeing further legs in the bull market. Guests also discussed Iran, Ukraine, Greenland, Venezuela, housing policy, a proposed 10% credit card rate cap, and a planned emergency power auction for the PJM grid.

U.S. and Taiwan agree to a trade deal lowering tariffs to 15% and boosting U.S. chip investment.
TSMC plans four more U.S. plants and higher capex, supporting AI data-center spending confidence.
U.S. stocks rose as tech strength and bank earnings supported the bull market.
Senator Slotkin discusses housing emergency, Iran, Venezuela, and investigations.
Dana Stroul says the Iran conflict is delayed, not resolved, amid regime weakness.
Ukrainian ambassador says peace talks continue but Russia attacks energy infrastructure.
ABA's Rob Nichols criticizes the credit card rate cap and sees a positive regulatory path for banks.
Trump administration plans an emergency PJM power auction to make tech pay for new generation.

Ideas

Michael Shepherd Tech/Defense Reporter 13:12

US-Taiwan deal boosts domestic chip output

The U.S.-Taiwan trade agreement lowers tariffs on Taiwanese imports to 15%, putting Taiwan on par with Japan and South Korea, and secures Taiwanese semiconductor companies' financing for U.S. operations. It is centered on AI and provides a clear path for investment into domestic chip production, supporting U.S. semiconductor manufacturing.

Michael Shepherd Tech/Defense Reporter 14:29

TSMC expands US plants, diversifies from China

The deal includes a promise from Taiwan Semiconductor Manufacturing Company to build as many as four additional U.S. plants, on top of six already agreed and two for advanced packaging, representing hundreds of billions of dollars through the 2030s. TSMC is diversifying geographically partly due to the threat of China; a Chinese takeover of Taiwan would disrupt TSMC and the global chip supply chain.

Romaine Bostick Anchor, Bloomberg 16:31

US bull market has more legs

Broad U.S. equities regained their momentum, with TSMC's higher capex and strong bank earnings supporting investor confidence. BlackRock and Morgan Stanley results helped reinforce corporate earnings and economic conditions, suggesting the three-year bull market has more legs into 2026.

Romaine Bostick Anchor, Bloomberg 16:53

TSMC capex validates AI data-center spending

TSMC's earnings and capex guidance above $50 billion, more than 25% higher than the prior year, gave investors comfort that data-center spending, the hallmark of 2025, has legs heading into 2026. This supports the AI data-center and semiconductor capex trade.

Rob Nichols President and CEO, American Bankers Association 39:25

US banks benefit from regulatory easing

The regulatory direction of travel is improving, with new Fed and FDIC appointees rightsizing regulation, and there is greater openness to bank M&A when there are sensible geographic or cultural reasons. This creates a positive path forward for the U.S. banking sector despite risks like the proposed credit card rate cap.

US, Taiwan Make Deal to Cut Tariffs, Boost Chip Investment | Balance of Power 01/15/26

Summary

Ideas

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