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

Taiwan commits $250 billion in investments to U.S. industries including semiconductors and energy while tariffs on Taiwanese imports drop to 15%, matching major U.S. trade partners.

  • On February 12, 2026, U.S. officials signed a final reciprocal trade agreement with Taiwan in Washington, formalizing a January framework under the American Institute in Taiwan and Taipei Economic and Cultural Representative Office.
  • U.S. Trade Representative Jamieson Greer said the Taiwanese government pledged to invest $250 billion in U.S. industries, boosting export opportunities for U.S. farmers, ranchers, fishermen, workers and manufacturers.
  • The final text shows the agreement adding technical language that cuts Taiwan's tariffs of up to 26% on many U.S. agricultural imports, including beef, dairy, and corn, to 15% from 20%.
  • The tariff agreement requires approval from Taiwan's legislature, and U.S. officials said the deal would help create world-class industrial parks with TSMC as a key investor.
  • Ahead of President Donald Trump's April visit, Taiwan produces about 90% of advanced chips, driving a U.S. trade imbalance of nearly $127 billion in the first 11 months of 2025.
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The United States and Taiwan signed a reciprocal trade agreement on Thursday (February 12). The United States will reduce tariffs on products imported from Taiwan to 15%, while Taiwan will eliminate or reduce 99% of its tariff barriers to the United States and plans to increase long-term purchases of U.S. products.

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Taiwan and the United States signed a trade deal on Thursday after months of negotiations that caps tariffs on Taiwanese goods at 15 percent. It also includes expanding partnerships in high-tech, German news agency dpa reported. The deal still needs to be ratified by Taiwan's parliament.

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Bloomberg broke the news in United States on Thursday, February 12, 2026.
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