US and Taiwan Finalize Trade Deal to Cut Tariffs and Secure US Purchases

Washington D.C. -- The United States and Taiwan have finalized a trade agreement aimed at reducing tariffs on goods flowing from Taiwan to the US and securing multi-billion dollar purchases of American products.

Under the agreement announced on Thursday, the general tariff rate on Taiwanese goods will be reduced from 20 percent to 15 percent, putting it on par with South Korea and Japan.

As part of the deal, Taiwan has agreed to purchase approximately $85 billion worth of American energy, aircraft, and equipment. According to the Office of the U.S. Trade Representative, Taiwan will eliminate or reduce 99 percent of tariff barriers and grant primary market access to American goods such as auto parts, chemical substances, machinery, health products, dairy, and pork.

In the US, items such as pineapples, castor oil, and ginseng from Taiwan will be made duty-free. Taiwan's President William Lai Ching-te stated that tariff exemptions have been secured for nearly 2,000 Taiwanese products, calling it a significant moment for the island's economy. He noted that the average tariff rate will drop to 12.3 percent.

Taiwan aims to send organic tea, fruits, bubble tea ingredients, coffee, pineapples, cakes, and other local products to the US market at competitive prices. President Lai said this agreement provides an opportunity for Taiwanese brands to enter the international market.

However, the agreement does not include direct commitments related to the chip industry, a crucial sector that contributes about 20 percent of the island's economy.

In 2025, due to high demand for AI chips, Taiwan's exports increased by 35 percent to $640.75 billion. The agreement does not incorporate Taiwan's commitment made last month to invest $250 billion in US chips.