U.S., Taiwan finalize deal to cut tariffs, boost purchases of U.S. goods

U.S. and Taiwan finalize a trade deal to reduce tariffs and increase purchases of American goods, enhancing economic ties.

Trump administration officials ​signed a final reciprocal trade agreement that confirmed a 15% ⁠U.S. tariff rate for imports from Taiwan, while committing Taiwan to a schedule for eliminating or lowering tariffs on nearly all U.S. goods.

The document released by the U.S. Trade ‌Representative's office on Thursday (February 12, 2026) also commits Taiwan to significantly boost purchases of U.S. goods from 2025 through 2029, including $44.4 billion of liquefied natural ‌gas and crude oil, $15.2 billion of civil aircraft and engines, $25.2 billion ‌of ⁠power grid equipment and generators, marine and steelmaking equipment.

The agreement adds ⁠technical language and specific details to a trade framework deal first reached in January that cut tariffs on Taiwanese goods, including from its powerhouse semiconductor industries, to 15% from the 20% initially ​imposed by Mr. Trump. That puts Taiwan ‌on an equal footing with its closest Asian export competitors, South Korea and Japan.

The January agreement included a pledge by Taiwan that its companies would invest $250 billion to boost production of semiconductors, energy and artificial intelligence ‌in the U.S., including $100 billion already committed by Taiwan Semiconductor Manufacturing Corp. The ​Taiwan government would guarantee another $250 billion in U.S. investments, Commerce Secretary Howard Lutnick said.

The final language did not provide further details ⁠on those investments, but said Taiwan's representative office in the U.S. would collaborate with U.S. authorities to facilitate additional new greenfield and brownfield investments "in strategic high-technology manufacturing sectors, ‌including AI, semiconductors, and advanced electronics."

The deal will immediately eliminate Taiwan's tariffs of up to 26% on many U.S. agricultural imports, including beef, dairy and corn. But some tariffs, including the current 40% tariff on pork belly and 32% on ham, will only fall to 10%, according to the tariff schedule.