Trump Administration Inks Trade Deal With Taiwan

The Trump administration recently reached a trade deal with Taiwan that will compel the Taiwanese government to remove or reduce 99 percent of its tariff barriers on U.S. products. Under the agreement, Taiwan also will need to provide preferential market access for U.S. industrial exports, including autos and auto parts, machinery, electrical products, metals, and minerals, and offer preferential market access for U.S. agricultural exports.

In a fact sheet, the Office of the U.S. Trade Representative (USTR) said the pact will facilitate “significant expansion and growth to U.S. manufacturing through substantial tariff reductions, removal of non-tariff barriers, investments, and procurement in key sectors and products.”

Specific aspects of the agreement include that:

• The two countries will strengthen cooperation regarding supply chain resilience and will work to finalize commitments on combatting duty evasion.
• The United States will provide Taiwan preferential treatment regarding tariffs and other remedial measures in the Section 232 investigation of semiconductors and semiconductor manufacturing equipment, as well as in certain other Section 232 investigations.
• Taiwan will refrain from providing non-commercial assistance or otherwise subsidizing its good-producing public enterprises, except where the actions fulfill a legitimate public services objective, benefit small businesses, or protect its essential security interest.
• Taiwan will remove quantitative restrictions and accept U.S. vehicles built to U.S. Federal Motor Vehicle Safety Standards, and emissions standards without additional requirements to enter Taiwan.
• Taiwan will add intellectual property protections and prioritize enforcement against intellectual property theft, including aligning with the standards in key international intellectual property treaties.
• Taiwan will prohibit the importation of goods produced with forced labor.
• Taiwan will continue to adopt and maintain high levels of environmental protection and to effectively enforce its environmental laws.
• Taiwan will facilitate a long-term increase in its purchases of important U.S. goods, including $44.4 billion worth of liquefied natural gas and crude oil, $15.2 billion worth of civil aircraft and engines, and $25.2 billion worth of power equipment, power grids, materials, generators, storage facilities, marine equipment, steel-making equipment, and other equipment from 2025 through 2029.
• The United States will reduce its tariffs on originating goods from Taiwan, applying the higher of either the U.S. Most Favored Nation (MFN) tariff rate or a tariff rate of 15 percent, comprised of the MFN tariff and a reciprocal tariff.

To read the text of trade agreement, click here. To read the tariff schedule, click here.