US and Taiwan finalise reciprocal trade deal
By Josh White
Date: Friday 13 Feb 2026
(Sharecast News) - The United States and Taiwan finalised a reciprocal trade agreement, it emerged on Friday, that sets a 15% US tariff on imports from Taiwan while committing Taipei to eliminate or reduce tariffs on nearly all American goods and significantly increase purchases of US products over the next four years.
Under the deal, Washington would lower tariffs on Taiwanese exports to 15%, down from the 20% initially imposed earlier this year, placing Taiwan on par with regional competitors Japan and South Korea.
In return, Taiwan would remove or reduce 99% of tariff barriers on US goods and grant preferential market access for industrial and agricultural exports, including autos, beef and dairy products.
Taiwan committed to purchase nearly $85bn in US goods between 2025 and 2029.
The package included $44.4bn in liquefied natural gas and crude oil, $15.2bn in civil aircraft and engines, and $25.2bn in power grid equipment, generators, marine and steelmaking equipment.
The agreement would immediately eliminate tariffs of up to 26% on many US agricultural products such as beef, dairy and corn, though some duties - including a 40% tariff on pork belly and 32% on ham - would fall only to 10%.
The Office of the US Trade Representative said Taiwan also agreed to address longstanding non-tariff barriers, including accepting vehicles built to US Federal Motor Vehicle Safety Standards without additional requirements, as well as recognising US standards for medical devices and pharmaceuticals.
US Trade Representative Jamieson Greer said the agreement would expand export opportunities for American farmers, manufacturers and workers while strengthening supply chain resilience in high-technology sectors.
The deal formalised a framework first reached in January, which also included pledges by Taiwanese companies to invest $250bn in the United States to expand semiconductor, energy and artificial intelligence production.
That total included $100bn already committed by Taiwan Semiconductor Manufacturing Co, while the Taiwanese government has said it would facilitate an additional $250bn in US investments.
The final text stated that Taiwan's representative office in Washington will work with US authorities to support further greenfield and brownfield investments in strategic high-technology manufacturing.
The agreement came as the US trade deficit with Taiwan has widened sharply, reaching $126.9bn in the first 11 months of 2025 compared with $73.7bn for all of 2024, driven largely by increased imports of high-end AI chips.
Commerce secretary Howard Lutnick previously said the US aimed to bring 40% of Taiwan's semiconductor supply chain to American soil, warning that companies failing to invest domestically could face tariffs of up to 100%.
Taiwanese officials have pushed back, arguing that relocating such a large share of the island's semiconductor ecosystem is not feasible given its deep-rooted domestic infrastructure.
Taiwan president Lai Ching-te described the agreement as a "pivotal moment" that would strengthen industrial supply chains and deepen a high-tech strategic partnership with the United States.
The deal still needed to be approved by Taiwan's parliament, where opposition parties hold a majority.
Reporting by Josh White for Sharecast.com.
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