US and Taiwan Sign Historic Trade Deal Slashing Tariffs and Boosting Bilateral Economic Cooperation in Landmark Reciprocal Agreement

Welcome to Taiwan Tariff News and Tracker. In a major breakthrough today, the United States and Taiwan have signed the U.S.-Taiwan Agreement on Reciprocal Trade, capping U.S. tariffs on Taiwanese goods at 15 percent—the higher of the Most Favored Nation rate or a reciprocal tariff under President Trump's Executive Order 14257, according to the Office of the United States Trade Representative fact sheet. This deal, reached through the American Institute in Taiwan and Taipei Economic and Cultural Representative Office, slashes tariffs from previous levels of up to 20 percent, as reported by ICIS, and exempts 2,072 Taiwanese products from reciprocal tariffs, including 261 agricultural items like orchids, tea, and mangoes worth $374 million annually, per Taiwan's Cabinet statement via Focus Taiwan.

Taiwan commits to eliminating or reducing 99 percent of its tariff barriers on U.S. industrial and agricultural exports, opening markets for autos, auto parts, chemicals, seafood, machinery, wheat, beef, pork, dairy, and more. Non-tariff barriers fall too: Taiwan will accept U.S. vehicles meeting federal safety standards without extra hurdles, recognize FDA approvals for medical devices and pharmaceuticals, and ease restrictions on beef, pork, poultry, and even bison meat. The USTR highlights this as a path to reciprocal trade, boosting U.S. manufacturing and addressing Trump's national emergency declaration on trade deficits.

Taiwan pledges massive purchases—$44.4 billion in liquefied natural gas and crude oil, $15.2 billion in civil aircraft and engines, and $25.2 billion in power equipment through 2029—while Taiwanese firms like TSMC ramp up at least $250 billion in U.S. investments for semiconductors, AI, and energy, as noted by the Council on Foreign Relations. This deepens the high-tech partnership amid surging bilateral trade, which hit over $185 billion in goods and services in 2024, with Taiwan as the U.S.'s fourth-largest partner in 2025.

Yet challenges linger: Taiwan's $150 billion trade surplus with the U.S. grew sharply last year, per CFR analysis, and debates persist over reshoring chip production and currency management, with Taiwan on the U.S. Treasury's monitoring list. Signed by Taiwan's representative Alexander Yui and AIT's Ingrid Larson, the pact heads to Taiwan's legislature for review, promising supply chain resilience and economic security.

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