U.S. and Taiwan Finalize Landmark Trade Agreement to Strengthen Economic Ties
The United States and Taiwan signed a landmark reciprocal trade agreement on Thursday, marking a significant step in deepening economic cooperation and reducing long-standing trade barriers. The deal was formalized in Washington through the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office (TECRO).
The agreement creates a framework for billions of dollars in new investments across the energy and technology sectors, reinforcing strategic ties between the two economies.
Tariff Cuts and Major U.S. Energy Purchases
Under the new pact, tariffs on Taiwanese goods exported to the United States will be reduced to 15% from 20%. In return, Taiwan has committed to a large-scale purchasing program that includes:
- $44 billion in U.S. liquefied natural gas (LNG) and crude oil
- $15 billion in American civil aircraft and related parts by 2029
These commitments are expected to support U.S. energy producers and aerospace manufacturers while strengthening bilateral trade flows.
Focus on Technology and Supply Chain Security
Beyond commodity purchases, the agreement places strong emphasis on securing high-tech supply chains and expanding industrial cooperation.
U.S. Trade Representative Jamieson Greer stated that the agreement will remove both tariff and non-tariff barriers affecting American exports. According to Greer, the deal will create new opportunities for U.S. farmers, ranchers, fishermen, workers, small businesses, and manufacturers.
Taiwan has also pledged to invest approximately $25 billion in U.S. power-generation equipment over the coming years. This investment is expected to boost domestic manufacturing in the United States while helping Taiwan enhance its energy infrastructure and long-term industrial capacity.
Removal of Non-Tariff Barriers
A key element of the agreement involves eliminating regulatory obstacles that previously limited U.S. exports.
Taiwan has agreed to:
- Remove quantitative restrictions on American motor vehicles
- Expand market access for U.S. beef, pork, dairy, and medical products
These measures aim to improve trade transparency and create a more open investment environment.
Strategic Importance for the Asia-Pacific Region
Ambassador Greer highlighted that the agreement reflects a broader trade strategy focused on strengthening economic ties in the Asia-Pacific region under the current U.S. administration.
The deal underscores a long-term commitment to enhancing trade, investment, and supply chain cooperation between the United States and Taiwan, while supporting economic growth and national security objectives.
