On February 12, 2026, the Trump administration and Taiwan finalized a reciprocal trade agreement. The deal sets the US tariff rate on most Taiwanese imports at 15%, down from 20%, matching the rate applied to Japan and South Korea. In exchange, Taiwan agreed to eliminate or reduce 99% of its tariff barriers on US goods and provide preferential market access for American agricultural and industrial products including beef, dairy, pork, autos, pharmaceuticals, and machinery.
Taiwan committed to purchasing approximately $84.8 billion in US goods from 2025-2029, including $44.4 billion in liquefied natural gas and crude oil, $15.2 billion in civil aircraft and engines, and $25.2 billion in power equipment. The agreement was signed by US Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick, Taiwan Vice Premier Cheng Li-chiun, and Minister Jen-ni Yang.
The deal addresses a $127 billion trade imbalance (through first 11 months of 2025) driven largely by Taiwan's semiconductor exports. Taiwan's chip industry accounts for up to 20% of its GDP, with exports rising 35% in 2025 to a record $640.75 billion. While this agreement references a separate January commitment for $250 billion in Taiwanese investment in US chip manufacturing, it does not include specific investment requirements in the trade deal itself. Taiwan's government must submit the agreement to its legislature for approval.