US and Taiwan Sign Trade Agreement to Lower Tariffs and Boost Imports

On February 12, 2026, the United States Trade Representative, Jamieson Greer, announced the finalisation of a reciprocal trade agreement with Taiwan. This deal establishes a 15% U.S. tariff rate on imports from Taiwan and outlines Taiwan's commitment to reduce or eliminate tariffs on nearly all U.S. goods.

The agreement aims to significantly enhance Taiwan's purchases of U.S. products between 2025 and 2029, including a pledge to buy $44.4 billion worth of liquefied natural gas and crude oil. Additionally, Taiwan will acquire $15.2 billion in civil aircraft and engines, and $25.2 billion in power grid equipment and generators, among other products. Taiwan previously faced a 20% tariff on its goods, which has now been adjusted to 15%, aligning its tariff rates with those of its regional competitors like South Korea and Japan.

Initially reached in January, this trade framework aims to bolster both countries' economic relations and boost the U.S. economy. Taiwan has assured investments totalling $250 billion to enhance semiconductor manufacturing, energy production, and artificial intelligence in the United States. This includes an initial commitment from Taiwan Semiconductor Manufacturing Corporation of $100 billion.

Further stipulations of the final deal reveal that Taiwan's tariffs on various U.S. agricultural imports will immediately be abolished; this includes up to a 26% tariff on beef, dairy, and corn imports. However, certain tariffs will see reductions only to 10%, such as the 40% tariff on pork belly and the 32% tariff on ham.

The agreement further includes provisions for Taiwan to eliminate non-tariff barriers on motor vehicles and to accept U.S. standards regarding automobile safety and the regulation of medical devices and pharmaceuticals. Jamieson Greer highlighted the significance of this agreement, stating, "This agreement will boost export opportunities for U.S. farmers, ranchers, fishermen, workers, and manufacturers." He also noted that it will strengthen the existing economic ties between the two nations and offer greater resilience in their supply chains, particularly within high-technology sectors.

Data from the U.S. Census Bureau indicates that the trade deficit with Taiwan increased markedly to $126.9 billion in the first eleven months of 2025, compared to $73.7 billion for the entirety of 2024. This sharp rise reflects the influx of high-end artificial intelligence chips imported from Taiwan, underscoring the critical nature of these trade relations.