Washington / Taipei — The United States and Taiwan have finalized a reciprocal trade agreement designed to lower tariffs on Taiwanese exports while expanding market access for U.S. goods, officials announced on Thursday. The deal aims to strengthen economic ties and create a more predictable trading environment for both parties.
Under the agreement, the general tariff on Taiwanese goods exported to the United States will be reduced from 20 percent to 15 percent, bringing Taiwan in line with other major Asian trading partners, including Japan and South Korea. In return, Taiwan has pledged to purchase approximately $85 billion in U.S. goods, spanning sectors such as energy, aircraft, industrial machinery, and equipment.
The agreement provides for the elimination or reduction of tariffs on 99 percent of U.S. products entering Taiwan. Key items that will benefit from preferential access include auto parts, chemicals, machinery, health products, dairy, and pork. Meanwhile, Taiwan has secured tariff exemptions for more than 2,000 of its own products, which include consumer goods such as tea, coffee, tropical fruits, orchids, and specialty food items. Officials said these exemptions will lower the average tariff rate on Taiwanese exports to the United States to roughly 12.3 percent.
Taiwanese President William Lai Ching‑te emphasized the economic significance of the deal, describing it as a pivotal step in enhancing the competitiveness of Taiwanese products overseas. “From items such as bubble tea ingredients and pineapple cakes to taro, mangoes, and other specialty foods, Taiwanese products will become more price-competitive in the U.S. market,” Lai said in a public statement. He added that the agreement aims to help Taiwanese brands secure a stronger presence in international markets.
The trade pact does not include formal commitments from Taiwan to invest directly in the U.S. semiconductor industry, although prior announcements by companies such as Taiwan Semiconductor Manufacturing indicate ongoing investment plans in high-technology sectors. Officials noted that firms will make independent investment decisions, consistent with previous pledges totaling billions of dollars.
U.S. Trade Representative Jamieson Greer highlighted the broader implications of the deal, noting that it strengthens long-standing trade relations and is expected to enhance supply chain resilience, particularly for high-tech industries. Greer said the agreement reflects ongoing efforts to deepen commercial ties and create a more balanced and predictable trade environment for U.S. and Taiwanese businesses alike.
Trade data show that nearly one-third of Taiwan’s exports went to the United States in 2025, marking the U.S. as the island’s largest export market for the first time since 2000. Analysts say the agreement could further boost bilateral trade volumes while providing opportunities for U.S. companies to expand their presence in key Taiwanese sectors.
The agreement is expected to be implemented gradually and will require regulatory steps and compliance with both U.S. and Taiwanese legislative and administrative processes. Officials from both sides describe the pact as a foundation for a more comprehensive trade relationship that benefits businesses, consumers, and supply chains across a range of industries.
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