Officials from the Trump administration have finalized a reciprocal trade agreement with Taiwan that sets a 15% U.S. tariff on imports from the island, while Taiwan agrees to a schedule to lower or remove tariffs on nearly all U.S. goods.
The U.S. Trade Representative’s office released the document on Thursday, highlighting Taiwan’s commitment to significantly increase purchases of American products between 2025 and 2029. These include $44.4 billion in liquefied natural gas and crude oil, $15.2 billion in civil aircraft and engines, and $25.2 billion in power grid, marine, and steelmaking equipment.
The agreement expands on a trade framework initially reached in January, which had already reduced tariffs on Taiwanese goods, including semiconductors, from 20% to 15%, bringing Taiwan in line with regional competitors such as South Korea and Japan.
President Lai Ching-te called the deal a “pivotal moment” for the country’s industries, saying it would strengthen the Taiwan–U.S. economic framework, build reliable industrial supply chains, and establish a high-tech strategic partnership.
Taiwan will also gain exemptions from reciprocal tariffs on more than 2,000 U.S. export items, lowering the average tariff on U.S. goods to 12.33%. The agreement now awaits approval by Taiwan’s parliament, where the opposition holds a majority.
As part of the earlier January agreement, Taiwan pledged $250 billion in investments to expand U.S. production in semiconductors, energy, and artificial intelligence, including $100 billion from Taiwan Semiconductor Manufacturing Corp (TSMC).
The Taiwanese government will guarantee an additional $250 billion in U.S. investments, while its representative office in the U.S. will work with authorities to facilitate new high-tech manufacturing projects.
Under the deal, Taiwan will immediately eliminate tariffs of up to 26% on many U.S. agricultural products, including beef, dairy, and corn. Some tariffs, such as the 40% levy on pork belly and 32% on ham, will drop to 10% according to the agreed schedule.
Non-tariff barriers will also be removed, and U.S. safety standards for automobiles, medical devices, and pharmaceuticals will be accepted.
U.S. Trade Representative Jamieson Greer said the agreement will expand export opportunities for American farmers, fishermen, and manufacturers while enhancing the resilience of supply chains in key high-tech sectors.
The U.S. trade deficit with Taiwan surged to $126.9 billion in the first 11 months of 2025, up from $73.7 billion for all of 2024, driven largely by increased imports of advanced AI chips.