The United States and Taiwan have taken a significant step toward deepening their economic partnership with a new reciprocal trade agreement signed on February 12.

Jamieson Greer, U.S. Trade Representative, and Li-chiun Cheng, Taiwan’s Vice Premier, formalized the deal, which aims to strengthen two-way trade and expand market access for businesses on both sides.

Under the agreement, Taiwan will eliminate or reduce 99% of tariff barriers on U.S. goods. The move opens the door for greater U.S. exports across a wide range of industries, including autos and auto parts, chemicals, seafood, machinery, health products, electrical equipment, metals, and minerals.

U.S. farmers and food producers also stand to benefit. Taiwan will grant preferential access for American agricultural exports such as wheat, beef and beef products, pork, dairy, lamb, tree nuts, horticultural goods, pet food, ketchup, and peanuts. In addition, Taiwan has committed to addressing non-tariff barriers that have affected U.S. exports of motor vehicles, medical devices, and pharmaceuticals.

In response, the United States has agreed to reduce tariffs on qualifying Taiwanese goods, citing Taiwan’s “significant steps” toward a more balanced trade relationship. However, the U.S. will apply the higher of either its Most Favored Nation (MFN) tariff rate or a 15% tariff—made up of the MFN rate plus a reciprocal tariff as defined under Executive Order 14257, issued April 2, 2025, as amended.

Overall, the agreement marks a notable effort by both governments to promote fairer, more reciprocal trade while strengthening economic ties between the United States and Taiwan.

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