US and Taiwan seal trade deal cutting tariffs to 15%

The United States and Taiwan signed a reciprocal trade agreement on Thursday that lowers tariffs on Taiwanese exports to 15% and expands bilateral market access, marking a significant step in US–Taiwan trade relations and Asia-Pacific supply chain cooperation.

Market access and tariff reductions

The agreement was concluded under the supervision of US Trade Representative Jamieson Greer through the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States. Under the terms, Taiwan will grant American industrial and agricultural goods preferential entry and remove or cut tariffs on 99% of US exports, including minerals, beef products and automobiles.

Major purchase commitments

Taipei also committed to acquiring more than $84 billion worth of American goods between 2025 and 2029. Planned purchases include energy supplies such as liquefied natural gas and crude oil, along with aircraft and power-generation equipment. US officials said Taiwan has agreed to address longstanding non-tariff barriers, including recognizing vehicles built to US Federal Motor Vehicle Safety Standards without imposing additional requirements.

Strategic and economic implications

Greer stated that the deal would ease both tariff and non-tariff obstacles for American exporters, creating new openings for farmers, manufacturers and small businesses. He emphasized that the agreement strengthens economic ties and reinforces high-technology supply chain resilience. Taiwanese leader Lai Ching-te described the pact as “a pivotal moment” for Taiwan’s economic transformation, saying it would deepen industrial cooperation and lay the groundwork for a high-tech strategic partnership. Earlier this year, Taiwanese technology firms pledged at least $250 billion in US production investments, backed by government credit support. From Türkiye’s perspective, analysts note that the agreement reflects intensifying economic alignment in the Asia-Pacific and could influence global trade flows and semiconductor supply chains.