The United States has secured a sweeping new reciprocal trade agreement with Taiwan, delivering what officials describe as a major win for American workers, farmers, and manufacturers.
According to the Office of the U.S. Trade Representative, Taiwan has agreed to eliminate or reduce nearly all of its tariff barriers on U.S. goods. In return, the U.S. will lower its tariff rate on most goods from Taiwan to 15 percent. The agreement calls for Taiwan to eliminate or reduce 99 percent of its tariff barriers and provide preferential market access for certain U.S. industrial and agricultural exports.
The deal also includes significant purchase commitments from Taiwan through 2029. Under the agreement, Taiwan will increase its imports of U.S. goods, including $44.4 billion in liquefied natural gas and crude oil, $15.2 billion in civil aircraft and engines, and $25.2 billion in power equipment, power grids, and other related equipment, according to a USTR fact sheet.
U.S. Trade Representative Jamieson Greer praised the agreement as another example of President Donald Trump’s leadership in strengthening America’s economic position in the Asia-Pacific region.
“President Trump’s leadership in the Asia-Pacific region continues to generate prosperous trade ties for the United States with important partners across Asia, while further advancing the economic and national security interests of the American people,” Greer said in a statement.
Greer emphasized that the agreement creates expanded opportunities for American farmers, ranchers, fishermen, workers, small business owners, and manufacturers. He also highlighted the broader strategic implications of the deal.
“This Agreement also builds on our longstanding economic and trade relationship with Taiwan and will significantly enhance the resilience of our supply chains, particularly in high-technology sectors,” Greer said. “I want to thank my counterparts from Taiwan for their strong commitment to achieving fair and balanced trade with the United States.”
The signing ceremony took place Thursday, with Greer joined by Commerce Secretary Howard Lutnick. Taiwan was represented by Vice Premier Li-chiun Cheng and Minister Without Portfolio Jen-ni Yang.
The new agreement follows closely on the heels of a separate trade arrangement announced weeks earlier by the Commerce Department. In that deal, Taiwan committed to making massive investments in U.S. chip manufacturing and advanced technologies.
Under the earlier agreement, Taiwanese companies pledged to invest at least $250 billion in the United States to expand advanced semiconductor production, energy infrastructure, and artificial intelligence capacity. In addition, the Taiwanese government will provide at least $250 billion in credit guarantees to support further investment.
At the time, Lutnick said the overarching goal was clear: to strengthen America’s domestic capabilities in semiconductor production.
The objective, he said, is for the United States to become “self-sufficient in the capacity of building semiconductors.”
Taken together, the agreements mark a significant expansion of economic cooperation between the two partners. By lowering trade barriers, boosting U.S. exports, and encouraging large-scale investment in critical industries, administration officials say the deals advance both economic growth and national security priorities.
For supporters of the administration’s trade agenda, the Taiwan agreements underscore a continued push to secure fairer terms for American producers while reinforcing strategic supply chains in high-tech sectors that are vital to the country’s future competitiveness.