WASHINGTON: Trump administration officers signed a last reciprocal trade agreement that confirmed a 15 per cent US tariff fee for imports from Taiwan, whereas committing Taiwan to a schedule for eliminating or reducing tariffs on almost all US items.
The doc launched by the US Commerce Consultant’s workplace on Thursday (Feb 12) additionally commits Taiwan to considerably enhance purchases of US items from 2025 by 2029, together with US$44.4 billion of liquefied pure fuel and crude oil, US$15.2 billion of civil plane and engines, US$25.2 billion of energy grid gear and mills, marine and steelmaking gear.
The settlement provides technical language and particular particulars to a commerce framework deal first reached in January that reduce tariffs on Taiwanese items, together with from its powerhouse semiconductor industries, to fifteen per cent from the 20 per cent initially imposed by Trump. That places Taiwan on an equal footing with its closest Asian export opponents, South Korea and Japan.
The January settlement included a pledge by Taiwan that its corporations would invest US$250 billion to boost production of semiconductors, power and synthetic intelligence within the US, together with US$100 billion already dedicated by Taiwan Semiconductor Manufacturing Corp. The Taiwan authorities would assure one other US$250 billion in US investments, Commerce Secretary Howard Lutnick stated.
The ultimate language didn’t present additional particulars on these investments, however stated Taiwan‘s consultant workplace within the US would collaborate with US authorities to facilitate extra new greenfield and brownfield investments “in strategic high-technology manufacturing sectors, together with AI, semiconductors, and superior electronics”.
The deal will instantly get rid of Taiwan‘s tariffs of as much as 26 per cent on many US agricultural imports, together with beef, dairy and corn. However some tariffs, together with the present 40 per cent tariff on pork stomach and 32 per cent on ham, will solely fall to 10 per cent, in keeping with the tariff schedule.
The US stated below the deal, Taiwan will take away non-tariff limitations on motor automobiles and settle for US auto security requirements in addition to these on medical gadgets and prescription drugs.
US Commerce Consultant Jamieson Greer stated in a press release that the settlement will enhance export alternatives for US farmers, ranchers, fishermen, staff, and producers.
“This settlement additionally builds on our longstanding financial and commerce relationship with Taiwan and can considerably improve the resilience of our provide chains, significantly in high-technology sectors,” Greer added.
For the primary 11 months of 2025, the US commerce deficit with Taiwan ballooned to US$126.9 billion from US$73.7 billion for all of 2024, largely because of the giant improve in imports of high-end AI chips from Taiwan, in keeping with US Census Bureau knowledge.
