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U.S. and Taiwan Seal Trade Pact That Fixes 15% U.S. Tariff and Slashes Taiwan’s Duties

Taiwan’s legislature now reviews a pact trading a fixed 15% U.S. rate for broad tariff cuts plus scheduled purchases through 2029.

Overview

  • Taiwan will remove or reduce tariffs on 99% of U.S. goods and immediately drop levies of up to 26% on many farm imports, with some pork products falling to 10%.
  • The United States commits to a 15% tariff ceiling or the MFN rate on Taiwanese imports, putting Taiwan on the same footing as Japan and South Korea.
  • Purchase schedules for 2025–2029 include $44.4 billion in U.S. LNG and crude, $15.2 billion in civil aircraft and engines, and $25.2 billion in power‑grid and related equipment.
  • The final text takes note of earlier pledges of about $250 billion in Taiwan‑linked U.S. tech investments and $250 billion in credit guarantees without codifying chip‑relocation mandates.
  • Taipei says 2,072 export items will be exempt from reciprocal tariffs and face only MFN rates, lowering the average U.S. tariff on Taiwanese goods to 12.33%, as the pact faces opposition scrutiny and ongoing criticism from Beijing.