US and Taiwan finalize trade deal cutting tariffs to 15 percent
The agreement lowers Taiwanese tariffs to match those of Japan and South Korea, while Taiwan commits to purchasing over $84 billion in US goods through 2029.
February 12, 2026
The United States and Taiwan have finalized a reciprocal trade agreement that reduces tariffs on Taiwanese exports and commits the island to significantly increased purchases of American goods.
The deal, announced Thursday, lowers the general US tariff rate on Taiwanese imports to 15 percent, bringing it to parity with tariff rates applied to Asian trade partners South Korea and Japan. In exchange, Taiwan agreed to eliminate or reduce tariff barriers on 99 percent of US goods and provide preferential market access to numerous American products.
Under the agreement, Taiwan will purchase over $84 billion in US goods between 2025 and 2029. The breakdown includes $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 equipment and generators, marine and steelmaking equipment. Additional US exports covered by the deal include auto parts, chemicals, machinery, health products, dairy products, beef products and minerals.
The US Trade Representative's office said Taiwan committed to resolving longstanding non-tariff barriers. One example cited was Taiwan's agreement to accept US vehicles built to US Federal Motor Vehicle Safety Standards without imposing additional requirements.
The agreement adds technical language and specific details to a trade framework deal first reached in January. Trump administration officials signed the final reciprocal trade agreement, which was released by the US Trade Representative's office on Thursday.
Taiwan will also commit to a schedule for eliminating or lowering tariffs on nearly all US goods as part of the finalized accord.