A new reciprocal trade agreement between the United States and Taiwan has formalised a revised tariff structure and set out extensive commitments on both sides.
Signed in Washington last week, the arrangement confirms a 15% US tariff rate for goods imported from Taiwan and introduces detailed provisions that expand on an initial framework agreed in January.
The revised terms reduce US tariffs on Taiwanese exports from the previous 20% level, aligning Taiwan with other major Asian trading partners.
A separate figure released by Taiwan’s Cabinet indicates that 1,811 industrial products will benefit from reduced reciprocal tariffs, with the average rate for applicable items expected to fall to 12.32%.
The agreement includes a substantial purchase schedule covering 2025 to 2029.
Taiwan will expand its procurement of US liquefied natural gas and crude oil by US$44.4 billion, civil aircraft and engines by US$15.2 billion, and power‑related equipment by US$25.2 billion, alongside additional marine and steelmaking machinery.
Investment commitments form a central element of the January framework.
Taiwanese companies pledged US$250 billion to strengthen US capacity in semiconductors, energy and artificial intelligence, including US$100 billion already committed by Taiwan Semiconductor Manufacturing Corp (2330.TW).
The Taiwan government intends to guarantee a further US$250 billion in US‑based investments.
Agricultural access will change under the new terms. Taiwan will remove tariffs of up to 26% on many US agricultural products, while certain pork and ham tariffs will fall to 10%.
The Cabinet also confirmed reductions on 15 US pork products within three years and the approval of imports of several additional beef items. Restrictions will remain in place on specified cattle materials and mechanically separated beef.
Tariff levels on 27 staple agricultural products, including rice, chicken and various seafood items, will be maintained.
At the same time, the US will eliminate all tariffs on 261 Taiwanese agricultural goods.
The agreement awaits approval by Taiwan’s parliament, and the effective date of the new framework has not yet been determined.
