The United States and Taiwan concluded a reciprocal trade agreement on Thursday, February 12, 2026, confirming a 15 percent tariff rate on Taiwanese imports while securing commitments from Taipei to eliminate or reduce 99 percent of duties on American goods. The deal was signed by United States Trade Representative (USTR) Jamieson Greer and Commerce Secretary Howard Lutnick alongside Taiwan Vice Premier Li-chiun Cheng and government minister Jen-ni Yang.
The agreement formalizes a preliminary framework reached in January that reduced tariffs on Taiwanese exports, particularly semiconductors, from 20 percent to 15 percent. This places Taiwan on equal footing with key Asian trading partners Japan and South Korea, helping stabilize its competitive position in global technology supply chains.
Taiwan will significantly increase purchases of American goods through 2029, committing to $84.8 billion in planned procurement. The purchases include $44.4 billion in liquefied natural gas (LNG) and crude oil, $15.2 billion in civil aircraft and engines, and $25.2 billion in power grid equipment, generators, marine equipment and steelmaking machinery, according to USTR documentation.
Taiwan President Lai Ching-te described the agreement as a major turning point for the island’s industrial future. He stated the deal would deepen technological cooperation and strengthen trusted manufacturing networks with Washington. Tariff exemptions covering more than 2,000 product lines will lower effective duty rates on Taiwanese exports, though parliamentary approval remains pending.
The accord addresses longstanding regulatory barriers. Taiwan agreed to recognize American safety and compliance standards for automobiles built to United States Federal Motor Vehicle Safety Standards without additional requirements. Similar provisions cover medical technologies and pharmaceuticals, moves expected to ease market entry for American exporters.
Taiwan will remove steep tariffs on American agricultural products including beef, dairy and corn. Some pork-related items will continue facing reduced rather than eliminated duties. The agricultural provisions represent significant market access gains for United States farm exporters.
A separate but related agreement secures $250 billion in Taiwanese investments in American industries including semiconductors, artificial intelligence applications and energy. Taiwan will provide up to an additional $250 billion in credit guarantees to help smaller businesses invest in United States operations. These investment commitments helped reduce initially planned tariffs from as high as 32 percent to the finalized 15 percent rate.
Taiwan Semiconductor Manufacturing Company (TSMC) accounts for a significant portion of the investment total. Commerce Secretary Lutnick cited additional government-backed guarantees intended to encourage further advanced manufacturing projects. The agreements aim to establish world-class industrial parks in America to build domestic manufacturing capacity in high-technology sectors.
The deal provides Taiwan preferential treatment regarding tariffs and other measures in the Section 232 investigation of semiconductors and semiconductor manufacturing equipment. This reflects recognition of Taiwan’s economic and national security alignment with the United States and the bilateral high-technology strategic partnership.
The agreement comes as America remains heavily reliant on Taiwan for computer chip production. Semiconductor exports contributed to a trade imbalance of nearly $127 billion during the first 11 months of 2025, according to United States Census Bureau figures. Two-way trade in goods and services between the United States and Taiwan totaled more than $185 billion in 2024.
Greer stated the arrangement would expand export opportunities while strengthening supply chain resilience in strategic industries. He emphasized that President Donald Trump challenged assumptions that American workers and businesses must tolerate unfair trade practices that have contributed to historic trade deficits.
The agreement occurred under the auspices of the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (TECRO). Beijing prohibits countries maintaining diplomatic relations with China from having formal ties with Taipei, requiring the use of unofficial representative offices for bilateral dealings.
China criticized the January preliminary agreement, claiming it would drain Taiwan’s economic interests and accused the ruling Democratic Progressive Party of allowing America to hollow out the island’s key industries. Chinese President Xi Jinping regards Taiwan reunification with the mainland as a historical inevitability, which Taiwan rejects.
Taiwan’s government will submit the reciprocal trade deal and investment plans to its legislature for approval. The island’s opposition-controlled parliament could pose challenges to ratification despite the agreement’s economic significance.
