A newly finalised trade agreement sets a 15% US tariff on Taiwanese goods while Taiwan commits to purchasing USD 84.8 billion in American products and investing USD 500 billion in US manufacturing by 2029, pending parliamentary approval.
The Office of the US Trade Representative (USTR) announced, on 12 February 2026, that the Trump administration finalised a reciprocal trade agreement with Taiwan.
The Trump Administration also released a fact sheet on the agreement.
The agreement establishes a 15% tariff on Taiwanese imports to the US. The deal represents an improvement from the initial 20% tariff imposed earlier.
Taiwan secured tariff exemptions on over 2,000 product categories, reducing the average tariff rate to 12.33%. In exchange, Taiwan agreed to eliminate or reduce tariffs on nearly all American goods according to a phased schedule.
The agreement commits Taiwan to purchasing USD 84.8 billion worth of American products between 2025 and 2029. This includes USD 44.4 billion in liquefied natural gas and crude oil, USD 15.2 billion in civil aircraft and engines, and USD 25.2 billion in power grid equipment, generators, marine equipment, and steelmaking machinery.
Taiwan also pledged USD 500 billion in total investments within the US. This comprises USD 250 billion from Taiwanese companies for semiconductor, energy, and artificial intelligence production—including Taiwan Semiconductor Manufacturing Corp’s previously announced USD 100 billion commitment—plus another USD 250 billion guaranteed by Taiwan’s government.
As per the deal, Taiwan will also immediately eliminate tariffs of up to 26% on various American agricultural products, including beef, dairy, and corn. However, some reductions will be gradual, with pork belly tariffs dropping from 40% to 10% and ham tariffs falling from 32% to 10%.
Taiwan will also remove non-tariff barriers on motor vehicles and accept American safety standards for automobiles, medical devices, and pharmaceuticals. The agreement requires approval from Taiwan’s parliament, currently controlled by opposition parties.
