Taipei agrees to purchase some $85bn of US vitality, plane and tools in change for 15 % tariff fee.
The US and Taiwan have finalised a commerce deal to reduce tariffs on Taiwanese exports and facilitate billions of {dollars} of spending on US items.
The settlement introduced on Thursday lowers the overall tariff on Taiwanese items from 20 % to fifteen %, the identical stage as Asian commerce companions South Korea and Japan, in change for Taipei agreeing to purchase about $85bn of US vitality, plane and tools.
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Under the deal, Taiwan will eradicate or scale back 99 % of tariff obstacles and supply preferential market entry to quite a few US items, together with auto elements, chemical substances, equipment, well being merchandise, dairy merchandise and pork, the workplace of the US commerce envoy mentioned in a press release.
The US will, in flip, exempt a wide variety of Taiwanese items from tariffs, together with chalk, castor oil, pineapples and ginseng.
Taiwanese President William Lai Ching-te mentioned Taipei had secured tariff exemptions for some 2,000 Taiwanese merchandise, hailing the settlement as a “pivotal” second for the self-governing island’s financial system.
Lai mentioned the deal, when varied carve-outs are included, would take the typical tariff fee on Taiwanese items to 12.3 %.
“From acquainted objects equivalent to Phalaenopsis orchids, tea, bubble tea elements (tapioca starch), and occasional, to pineapple truffles, taro, pineapples, and mangoes – these merchandise that characterize Taiwan will grow to be extra price-competitive within the US market,” Lai mentioned in a press release on social media.
“We intention not solely to promote Taiwan’s nice flavors abroad, but in addition to make sure Taiwanese manufacturers actually enter worldwide markets,” he mentioned.
Lai made no point out of Taiwan’s chip business, a vital driver of the island’s financial system that’s estimated to account for as much as 20 % of gross home product (GDP).
Taiwan’s exports rose by 35 % in 2025 on the again of livid demand for its AI chips, hitting a file $640.75bn.
Thursday’s settlement notably doesn’t embody particular commitments from Taiwan to put money into the US chip business, regardless of an announcement by US President Donald Trump’s administration final month that Taiwanese firms would pour $250bn into the sector.
A reality sheet launched by the Workplace of the US Commerce Consultant mentioned the 2 sides “take observe” of the January deal, which included a previous dedication by chip large Taiwan Semiconductor Manufacturing to invest $100bn in the US.
US Commerce Consultant Jamieson Greer mentioned Thursday’s settlement constructed on the longstanding commerce relations between Taiwan and the US and would “considerably improve the resilience of our provide chains, notably in high-technology sectors”.
“President Trump’s management within the Asia Pacific area continues to generate affluent commerce ties for the USA with necessary companions throughout Asia, whereas additional advancing the financial and nationwide safety pursuits of the American folks,” Greer mentioned.
Practically one-third of Taiwan’s exports went to the US in 2025, making the nation the island’s greatest marketplace for the primary time since 2000.
