Morning Business Report: U.S.–Taiwan trade deal boosts chip production
The United States and Taiwan signed a new trade deal Thursday aimed at strengthening American semiconductor production while lowering tariffs on Taiwanese goods.
(LILAMAX)- The United States and Taiwan signed a new trade deal Thursday aimed at strengthening American semiconductor production while lowering tariffs on Taiwanese goods.
As part of the agreement, Taiwan Semiconductor Manufacturing Company will expand its Arizona operations by adding several new factories. The move represents a $250 billion investment in the United States.
In exchange, the U.S. is cutting tariffs on Taiwanese goods to 15%, down from 20%.
Meanwhile, new data highlights growing financial strain for American car buyers. In the fourth quarter of 2025, 29% of trade-ins toward new vehicle purchases had negative equity, according to the car website Edmunds.
The average amount owed on those vehicles rose to $7,200 — an all-time high.
Drivers with negative equity often have to pay the balance in cash or roll the debt into their new loan, increasing monthly payments.
On Wall Street, the S&P 500 closed higher Thursday as chip and bank stocks rallied. A pullback in oil prices also helped lift the broader market.
Housing data shows foreclosure activity increased in 2025. Foreclosure filings were reported on 367,000 U.S. properties, up 14% from 2024, though still 25% below 2019 levels.
The ATTOM report also shows that in December 2025 alone, nearly 45,000 properties had foreclosure filings — a 26% jump from the previous month and 57% higher than a year earlier.
Foreclosures are being driven largely by buyers who purchased homes at peak prices and now face high monthly costs.
In consumer news, Verizon is offering a $20 credit to millions of customers affected by a 10-hour outage Wednesday. The company says the disruption primarily impacted users in the Northeast, Southern California, Texas, and parts of the Midwest. Verizon also confirmed the outage was not caused by a cyberattack.
