U.S., Taiwan finalize deal to chop tariffs, increase purchases of U.S. items

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U.S. Trade Representative Jamieson Greer in a statement that the agreement will boost export opportunities for U.S. farmers, ranchers, fishermen, workers, and ⁠manufacturers.

U.S. Commerce Consultant Jamieson Greer in a press release that the settlement will increase export alternatives for U.S. farmers, ranchers, fishermen, staff, and ⁠producers.
| Picture Credit score: AP

Trump administration officers ​signed a remaining reciprocal commerce settlement that confirmed a 15% ⁠U.S. tariff charge for imports from Taiwan, whereas committing Taiwan to a schedule for eliminating or reducing tariffs on practically all U.S. items.

The doc launched by the U.S. Commerce ‌Consultant’s workplace on Thursday (February 12, 2026) additionally commits Taiwan to considerably increase purchases of U.S. items from 2025 by means of 2029, together with $44.4 billion of liquefied pure ‌gasoline and crude oil, $15.2 billion of civil plane and engines, $25.2 billion ‌of ⁠energy grid gear and turbines, marine and steelmaking gear.

The settlement provides ⁠technical language and particular particulars to a commerce framework deal first reached in January that lower tariffs on Taiwanese items, together with from its powerhouse semiconductor industries, to fifteen% from the 20% initially ​imposed by Mr. Trump. That places Taiwan ‌on an equal footing with its closest Asian export opponents, South Korea and Japan.

The January settlement included a pledge by Taiwan that its corporations would make investments $250 billion to spice up manufacturing of semiconductors, vitality and synthetic intelligence ‌within the U.S., together with $100 billion already dedicated by Taiwan Semiconductor Manufacturing Corp. The ​Taiwan authorities would assure one other $250 billion in U.S. investments, Commerce Secretary Howard Lutnick stated.

The ultimate language didn’t present additional particulars ⁠on these investments, however stated Taiwan’s consultant workplace within the U.S. would collaborate with U.S. authorities to facilitate extra new greenfield and brownfield investments “in strategic high-technology manufacturing sectors, ‌together with AI, semiconductors, and superior electronics.”

The deal will instantly eradicate Taiwan’s tariffs of as much as 26% on many U.S. agricultural imports, together with beef, dairy and corn. However some tariffs, together with the present 40% tariff on pork stomach and 32% on ham, will solely fall to 10%, in accordance with the tariff schedule.

The U.S. stated underneath the deal, Taiwan will take away non-tariff boundaries on motor automobiles ‌and settle for U.S. auto security requirements in addition to these on medical units and prescription drugs.

U.S. ​Commerce Consultant Jamieson Greer stated in a press release that the settlement will increase export alternatives for U.S. farmers, ranchers, fishermen, staff, and ⁠producers.

“This settlement additionally builds on our longstanding financial and commerce relationship with Taiwan ⁠and can considerably improve the resilience of our provide chains, significantly in high-technology sectors,” Mr. Greer added.

For the primary 11 months of 2025, the ‌U.S. commerce deficit with Taiwan ballooned to $126.9 billion from $73.7 billion for all of 2024, largely because of the massive improve in imports of high-end AI ​chips from Taiwan, in accordance with U.S. Census Bureau knowledge.

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