Taipei, Taiwan / Envato Market
by Emmitt Barry, Worthy News Washington D.C. Bureau Chief
(Worthy News) – The Trump administration has finalized a sweeping reciprocal trade agreement with Taiwan, confirming a 15 percent U.S. tariff rate on Taiwanese imports while securing broad new market access and purchase commitments for American goods.
The agreement, released Thursday by the Office of the U.S. Trade Representative, builds on a January framework negotiated under President Donald Trump. That earlier deal reduced proposed tariffs on Taiwanese goods — including semiconductor exports — from 20 percent to 15 percent, placing Taiwan on equal footing with key Asian competitors Japan and South Korea.
Under the finalized terms of the agreement, Taiwan will dramatically increase its purchases of American goods between 2025 and 2029, committing to $44.4 billion in liquefied natural gas and crude oil, $15.2 billion in civil aircraft and engines, and $25.2 billion in power grid equipment, generators, as well as marine and steelmaking equipment — a sweeping package aimed at strengthening U.S. energy exports, manufacturing output, and strategic industrial supply chains.
Taiwan also agreed to eliminate or lower tariffs on nearly all U.S. exports. Tariffs of up to 26 percent on American agricultural products — including beef, dairy and corn — will be eliminated immediately. Some tariffs, including a 40 percent levy on pork belly and 32 percent on ham, will drop to 10 percent.
In addition, Taiwan will remove non-tariff barriers on motor vehicles and accept U.S. auto safety standards, along with regulatory standards for medical devices and pharmaceuticals.
Taiwan President Lai Ching-te called the deal a “pivotal moment” for Taiwan’s economy, writing that it would optimize bilateral trade ties, strengthen industrial supply chains and establish a high-tech strategic partnership with the United States.
The January agreement also included a pledge for Taiwanese companies to invest 250 billion dollars in U.S.-based semiconductor, energy and artificial intelligence production. Of that total, 100 billion dollars has already been committed by Taiwan Semiconductor Manufacturing Company. Commerce Secretary Howard Lutnick said Taiwan’s government would guarantee an additional 250 billion dollars in U.S. investments, though the final document did not expand on those guarantees.
U.S. Trade Representative Jamieson Greer said the agreement will expand export opportunities for American farmers, ranchers, fishermen, workers and manufacturers, while strengthening supply chain resilience in high-technology sectors.
The deal comes as the U.S. trade deficit with Taiwan surged to 126.9 billion dollars during the first 11 months of 2025, up sharply from 73.7 billion dollars for all of 2024, driven largely by increased imports of advanced AI chips.
Administration officials say the agreement reflects President Trump’s strategy of reciprocal trade — maintaining targeted tariffs while securing concrete purchase commitments, industrial investment, and stronger supply chain security.
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