Trump administration reaches a trade deal to lower Taiwan's tariff barriers

WASHINGTON -- The Trump medication reached a commercialized woody with Taiwan connected Thursday, with Taiwan agreeing to region oregon trim 99% of its tariff barriers, the bureau of the U.S. Trade Representative said.

The statement comes arsenic the U.S. remains reliant connected Taiwan for its accumulation of machine chips, the exporting of which contributed to a commercialized imbalance of astir $127 cardinal during the archetypal 11 months of 2025, according to the Census Bureau.

Most of Taiwan’s exports to the U.S. volition beryllium taxed astatine a 15% rate, the USTR's bureau said. The 15% complaint is the aforesaid arsenic that levied connected different U.S. trading partners successful the Asia-Pacific region, specified arsenic Japan and South Korea.

Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick attended the signing of the reciprocal agreement, which occurred nether the auspices of the American Institute successful Taiwan and the Taipei Economic and Cultural Representative Office successful the United States. Taiwan’s Vice Premier Li-chiun Cheng and its authorities curate Jen-ni Yang besides attended the signing.

“President Trump’s enactment successful the Asia-Pacific portion continues to make prosperous commercialized ties for the United States with important partners crossed Asia, portion further advancing the economical and nationalist information interests of the American people,” Greer said successful a statement.

The Taiwanese authorities said successful a connection that the tariff complaint acceptable successful the statement allows its companies to vie connected a level tract with Japan, South Korea and the European Union. It besides said the statement “eliminated” the disadvantage from a deficiency of a escaped commercialized statement betwixt Taiwan and the U.S.

The woody comes up of President Donald Trump’s planned sojourn to China successful April and suggests a deepening economical narration betwixt the U.S. and Taiwan.

Taiwan is simply a self-ruled ideology that China claims arsenic its ain territory, to beryllium annexed by unit if necessary. Beijing prohibits each countries it has diplomatic relations with — including the U.S. — from having ceremonial ties with Taipei.

Under the deal, Taiwan volition marque investments of $250 cardinal successful U.S. industries, specified arsenic machine chips, artificial quality applications and energy. The Taiwanese authorities says it volition supply up to an further $250 cardinal successful recognition guarantees to assistance smaller businesses put successful the U.S.

The statement would marque it easier for the U.S. to merchantability autos, pharmaceutical drugs and nutrient products successful Taiwan. But the captious constituent mightiness beryllium that Taiwanese companies would put successful the accumulation of machine chips successful the U.S., perchance helping to easiness the commercialized imbalance.

The investments helped alteration the U.S. to trim its planned tariffs from arsenic overmuch arsenic 32% initially to 15%.

Taiwan's authorities said it volition taxable the woody and concern plans to its legislature for approval.

The U.S. broadside said the woody with Taiwan would assistance make respective “world-class” concern parks successful America successful bid to assistance physique up home manufacturing of precocious technologies specified arsenic chips. The Commerce Department successful January described it arsenic “a historical commercialized woody that volition thrust a monolithic reshoring of America’s semiconductor sector.”

In return, the U.S. would springiness preferential attraction to Taiwan regarding the imaginable tariffs stemming from a Section 232 probe of the importing of machine chips and semiconductor manufacturing equipment.

TSMC, the chip-making giant, is expected to beryllium the cardinal investor. It has committed to $165 cardinal successful investments successful the U.S., including not lone fabrication plants but besides a large probe and improvement halfway that would assistance physique a proviso concatenation to powerfulness U.S. artificial quality ambitions. Major U.S. tech companies specified arsenic Nvidia and AMD trust connected TSMC for manufacturing highly precocious chips.

Taiwan besides said the investments volition beryllium two-way, with U.S. companies besides investing successful cardinal Taiwanese industries. Nvidia this week signed a onshore woody successful Taipei to physique a office bureau there.