US and Taiwan Sign "Pivotal" Tariff-Cutting Deal to 15% From The Initial 20%

US and Taiwan Sign “Pivotal” Tariff-Cutting Deal to 15% From The Initial 20%

Defying warnings from Beijing, the U.S. has signed a major trade agreement with Taiwan to slash tariffs on high-tech goods, further complicating U.S.-China relations.

SWT News Desk February 13, 2026 2 minutes read

The United States and Taiwan have formally signed a reciprocal trade agreement that cuts tariffs, boosts market access and deepens economic ties between Washington and Taipei a development leaders on both sides are calling pivotal for future growth and supply-chain resilience.

Under the deal, the U.S. will lower its tariffs on Taiwanese imports chiefly industrial and high-technology goods to 15%, down from as high as 20%, bringing Taiwan in line with key U.S. trading partners such as Japan and South Korea. In return, Taiwan has agreed to reduce or eliminate tariffs on roughly 99% of U.S. exports, giving American manufacturers and farmers broader access to Taiwanese markets.

Taipei has also pledged to purchase tens of billions of dollars’ worth of U.S. products from 2025 through 2029, including liquefied natural gas, crude oil, aircraft and industrial equipment, under a multi-year framework designed to rebalance trade flows and stimulate bilateral commerce.

The tariff changes are expected to benefit a wide swath of industries on both sides. Taiwan will remove or cut tariffs on U.S. agricultural imports such as beef, dairy and corn, and will eliminate non-tariff barriers on U.S. vehicles, medical devices and pharmaceuticals, standardizing them to U.S. safety rules.

Taiwan’s President Lai Ching-te described the agreement as a “pivotal moment” for the island’s economy, saying it will help optimize the Taiwan–U.S. economic framework and foster a high-tech strategic partnership. The pact must still be reviewed and approved by Taiwan’s legislature before it takes full effect.

Officials in both capitals have also highlighted the agreement’s potential to strengthen supply-chain resilience, particularly in semiconductors, artificial intelligence technologies and other critical sectors, amid broader geopolitical competition in the Asia-Pacific region.

Analysts say the deal marks one of the most significant recent shifts in U.S.–Taiwan economic relations, building on previous tariff discussions and aligning trade policy with wider strategic objectives.