U.S., Taiwan Sign Trade Deal Lowering Tariffs and Expanding Market Access

Washington - The United States and Taiwan have signed a new trade agreement that will lower U.S. tariffs on Taiwanese exports to 15%, while Taipei will significantly expand access for American goods.

Under the agreement, Taiwan will remove or reduce 99% of tariff barriers on U.S. products and grant preferential market access to industrial and agricultural exports, including automobiles, beef and minerals.

In return, Washington will cut tariffs on Taiwanese exports to 15%, aligning them with rates applied to key Asian allies such as Japan and South Korea.

Taiwan has also committed to purchase more than $84 billion worth of U.S. goods between 2025 and 2029. The planned purchases include liquefied natural gas, crude oil, aircraft and power equipment.

The Office of the U.S. Trade Representative said Taiwan has agreed to address longstanding non-tariff barriers, including accepting vehicles built to U.S. Federal Motor Vehicle Safety Standards without additional local requirements.

The deal follows a January announcement in which Taiwanese semiconductor and technology firms pledged to invest at least $250 billion in U.S. production capacity, supported by an equivalent amount of government-backed credit.

However, tensions remain over semiconductor supply chains. U.S. officials have proposed shifting 40% of Taiwan’s semiconductor supply chain to the United States. Taiwanese authorities have said such a move would be impractical, citing the deeply integrated ecosystem built over decades on the island.

China has criticized the agreement, arguing it could undermine Taiwan’s economic interests. Beijing considers Taiwan part of its territory, while Taipei rejects that claim.

The agreement comes amid broader geopolitical tensions in the region and ongoing debates over trade, technology and security cooperation between Washington and Taipei.