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U.S. and Taiwan Sign Trade Pact Capping Tariffs at 15% and Locking In Major Purchases

The pact now moves to Taiwan's opposition-led legislature for approval.

Overview

  • Taiwan will abolish or cut 99% of tariffs on U.S. goods, while the United States caps tariffs on Taiwanese imports at up to 15% with exemptions covering more than 2,000 export items.
  • From 2025 to 2029 Taiwan commits to boost U.S. purchases, including $44.4 billion in LNG and crude, about $15 billion in civil aircraft and engines, and $25 billion in power-grid and industrial equipment.
  • Taiwan pledges at least $250 billion in new direct investment in the United States as part of the agreement.
  • U.S. officials say the deal strengthens high‑tech supply chains and grants preferential treatment for Taiwanese semiconductors and related products.
  • The accord was signed under American Institute in Taiwan and Taipei Economic and Cultural Office auspices with USTR Jamieson Greer, Commerce Secretary Howard Lutnick, Vice Premier Cheng Li-chiun and Minister Yang Jen-ni present, and it grants the U.S. preferred access for exports including autos and beef.