New Delhi, Jan. 16 -- The United States and Taiwan reached a trade deal Thursday that cuts tariffs on Taiwanese goods in exchange for $250 billion in new investments in the U.S. tech industry.

The deal is the latest President Donald Trump has struck - such as those with the European Union and Japan - since he unveiled a sweeping tariff plan last April to address trade imbalances. Trump also has a one-year trade truce with China to stabilize ties with the world's second largest economy.

Trump initially set the tariff at 32% on Taiwanese goods but later changed it to 20%. The new agreement slashes the tariff rate to 15%, the same as levied on other U.S. trading partners in the Asia-Pacific region such as Japan and South Korea.

In a state...