The United States and Taiwan finalized a reciprocal trade deal that sets a 15% US tariff on Taiwanese imports. The agreement requires Taiwan to eliminate or lower tariffs on nearly all US goods. It affects industries, exporters, and consumers on both sides, enhancing high-tech and agricultural trade.
The pact commits Taiwan to significantly boost purchases of US goods between 2025 and 2029, including $44.4 billion of liquefied natural gas and crude oil, $15.2 billion of civil aircraft and engines, and $25.2 billion of power grid, marine, and steelmaking equipment. Taiwan also won exemptions from reciprocal tariffs for over 2,000 exported products, lowering the average US tariff to 12.33%.
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The deal builds on a January framework agreement that reduced tariffs on Taiwanese goods, including semiconductors, from 20% to 15%. President Lai Ching-te called it a pivotal moment for Taiwan’s economy and high-tech industries. He said the pact will optimize trade, build reliable supply chains, and establish a Taiwan-US strategic partnership.
Taiwan’s parliament must approve the deal, where opposition lawmakers hold a majority. The agreement immediately eliminates tariffs of up to 26% on many US agricultural imports, while some, such as pork belly and ham, will fall to 10%. Taiwan will also remove non-tariff barriers on autos and accept US safety standards for medical devices and pharmaceuticals.
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The deal follows Taiwan’s $250 billion pledge to invest in US production of semiconductors, energy, and artificial intelligence, including $100 billion by Taiwan Semiconductor Manufacturing Corp.. US Trade Representative Jamieson Greer said it will boost opportunities for farmers, manufacturers, and workers while enhancing supply chain resilience in high-tech sectors.