U.S., Taiwan finalise deal to cut tariffs, boost purchases of U.S. goods

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Washington: The United States and Taiwan have finalized a significant trade agreement aimed at lowering tariff barriers and increasing Taipei’s purchases of American goods, marking a new chapter in economic ties between the two partners. Under the arrangement signed by officials in Washington on February 12, the U.S. confirmed a 15 percent tariff rate on imports from Taiwan, down from earlier levels, while Taiwan agreed to a schedule to phase out or reduce tariffs on most U.S. products.

The pact, formally confirmed by the U.S. Trade Representative’s office, outlines commitments by Taiwan to buy substantial amounts of U.S. goods between 2025 and 2029. Key import categories include liquefied natural gas and crude oil worth roughly $44.4 billion, civil aircraft and engines at about $15.2 billion, and power grid and industrial equipment valued near $25.2 billion.

In addition to tariff cuts, the agreement commits Taiwan to eliminate immediate tariffs of up to 26 percent on many U.S. farm products such as beef, dairy and corn, while some levies such as higher duties on pork items will be reduced over time. Taipei has also agreed to accept U.S. safety standards for a range of goods including automobiles, medical devices and pharmaceuticals to facilitate smoother market access.

Washington officials underscored that the deal builds on a broader framework first reached in January and is expected to enhance supply chain resilience, especially in sectors like high technology and advanced manufacturing. U.S. Trade Representative Jamieson Greer said the pact will expand export opportunities for American farmers, manufacturers and workers, while integrating Taiwan more deeply into regional economic networks.

Taiwanese leaders hailed the agreement as transformative, with President Lai Ching-te calling it a “pivotal moment” for the island’s economy and its industries. The deal also includes a commitment backed by Taiwanese companies to invest billions of dollars into U.S. semiconductor, energy and AI production, further bolstering commercial ties.

Despite its promise, the pact must still secure approval from Taiwan’s largely opposition-controlled parliament. If ratified, the agreement could reshape trade patterns, reduce longstanding imbalances and cement the U.S.–Taiwan economic relationship amid shifting global supply chains.