FX.co ★ U.S., Taiwan Sign Trade Deal Slashing Tariffs to 15%

The United States and Taiwan have signed a trade agreement that cuts tariffs on Taiwanese exports to 15%, aligning them with the rates applied to key regional partners Japan and South Korea, while expanding market access for American goods in Taiwan. Under the deal, Taipei will remove or reduce 99% of tariff barriers on U.S. products and grant “preferential market access” for a wide range of industrial and agricultural exports, including automobiles, beef, and minerals. Taiwan has also committed to purchasing more than USD 84 billion in U.S. goods between 2025 and 2029, covering liquefied natural gas, crude oil, aircraft, and power equipment. According to the Office of the U.S. Trade Representative, Taiwan has agreed to address “longstanding non-tariff barriers,” notably by recognizing U.S. vehicles built to federal safety standards without imposing additional requirements. The agreement builds on a January commitment by Taiwanese semiconductor companies to invest at least USD 250 billion in manufacturing facilities in the United States, backed by matching government credit support.