The United States and Taiwan have finalized their bilateral trade agreement. Washington confirms a 15% tariff rate on Taiwanese imports, putting Taiwan on par with Japan and South Korea.
🔄 In return, Taiwan commits to lowering or eliminating 99% of its tariffs on U.S. goods and granting preferential market access to American products.
The deal
The U.S. trade deficit with Taiwan rose to $126.9 billion in 2025. Taiwan secured exemptions for more than 2,000 product categories.
Deal optimism: President Lai Ching-te called it a “pivotal moment for Taiwan’s economy” and a “major transformation.”
Taiwan pledged purchases of more than $84 billion in U.S. goods through 2029, including:
$44.4 billion in LNG and crude oil
$15.2 billion in civil aircraft and engines
$25.2 billion in power grid equipment and generators
Non-tariff barriers are also set to be reduced, including in autos, medical devices and pharmaceutical standards.
Market reality
Back in January, Taiwan pledged $250 billion in investments into U.S. production capacity, primarily in semiconductors, energy and AI — including $100 billion from TSMC. Another $250 billion in government-backed investment guarantees are expected to follow.
Washington’s goal: more high-tech production on U.S. soil.
Taipei’s goal: tariff stability and a strategic partnership.
From a small concession to a sweeping demand: The deal positions Taiwan as a key pillar in Washington’s chip strategy against China. Commerce Secretary Lutnick is calling for 40% of Taiwan’s semiconductor supply chain to relocate to the U.S., a demand Taipei has labeled “impossible.”
Beijing has sharply criticized the agreement, accusing the U.S. of economically “hollowing out” Taiwan and pressuring the island to shift its core industries abroad.
👉 Full story: Straits Times, CNBC, CNBC
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