US and Taiwan Forge Landmark Trade Deal Slashing Tariffs and Boosting Economic Ties Across Key Sectors
15 February 2026

US and Taiwan Forge Landmark Trade Deal Slashing Tariffs and Boosting Economic Ties Across Key Sectors

Taiwan Tariff News and Tracker

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The United States and Taiwan just finalized a landmark reciprocal trade agreement, marking a significant shift in economic relations between the two partners. Signed on Thursday in Washington through the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office, this deal represents one of the most substantial trade pacts Taiwan has secured under the Trump administration.

Here's what listeners need to know about the tariff changes. The U.S. has reduced its tariff rate on Taiwanese goods from 20 percent down to 15 percent. According to Taiwan's Vice Premier Cheng Li-chiun, this represents the best treatment Washington has granted to any country with which it maintains a trade deficit. Even more notably, Taiwan secured exemptions from tariffs on 2,072 export products, bringing the average tariff rate on Taiwanese goods to just 12.33 percent.

For Taiwan, the concessions are substantial. The agreement eliminates or reduces 99 percent of Taiwan's tariff barriers on U.S. exports. Taiwan is immediately dropping tariffs on American agricultural products, including slashing pork tariffs from 40 percent down to 10 percent and eliminating tariffs up to 26 percent on beef, dairy, and corn. The agreement also removes long-standing non-tariff barriers affecting U.S. vehicles, medical devices, and pharmaceuticals.

Perhaps most significantly, the deal involves massive investment commitments. According to the U.S. Trade Representative's office, Taiwan plans to purchase 44.4 billion dollars in liquefied natural gas and crude oil, 15.2 billion dollars in civil aircraft and engines, and 25.2 billion dollars in power equipment and related infrastructure through 2029. Taiwan is also committing substantial semiconductor and technology investments in the United States.

The agreement reflects what the Trump administration calls a victory against unfair trade practices. U.S. Trade Ambassador Jamieson Greer emphasized that the deal will eliminate tariff and non-tariff barriers facing American farmers, ranchers, manufacturers, and workers while strengthening supply chain resilience in critical high-technology sectors.

However, some observers note persistent questions about whether the agreement fully addresses underlying trade imbalances, currency policies, and the long-term reshoring of semiconductor manufacturing to American soil. Taiwan's opposition parties have also pledged to scrutinize the deal, citing concerns about domestic implications.

What's clear is that this agreement signals a deepening economic partnership between Washington and Taipei, with significant tariff reductions serving as the foundation for expanded bilateral investment and trade in the years ahead.

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