The United States and Taiwan have finalized a new trade agreement that lowers tariffs on most Taiwanese exports to 15%, strengthening economic ties between the two sides.
Under the deal, the US will reduce its general tariff rate on Taiwanese goods from 20% to 15%, aligning Taiwan with key Asian partners such as South Korea and Japan. In return, Taipei agreed to remove or reduce 99% of its tariff barriers on American products and commit to purchasing more than $85 billion worth of US energy, aircraft, and industrial equipment.
Taiwanese President William Lai Ching-te described the agreement as a “pivotal” moment for the island’s economy, saying it would make Taiwanese goods more competitive in the US market. Thousands of products are expected to benefit from lower tariff rates.
The Office of the US Trade Representative said the deal will expand market access for American auto parts, machinery, chemicals, dairy, and pork, while also exempting a wide range of Taiwanese goods from US tariffs.
The agreement does not include new binding commitments related to Taiwan’s semiconductor industry, although both sides acknowledged previous investment announcements involving Taiwanese chipmakers in the United States.
The US became Taiwan’s largest export market in 2025, accounting for nearly one-third of total exports, as demand for high-tech and AI-related products surged.
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