It will apply the higher of either the U.S. Most Favored Nation (MFN) tariff rate or a tariff rate of 15 per cent, comprised of the MFN tariff and a reciprocal tariff, as per the factsheet released by Office of US Trade representative.
Two-way trade in goods and services with Taiwan amounted to more than USD 185 billion in 2024.
Here are key terms of agreement:
- The Taiwan side will eliminate or reduce 99 per cent of tariff barriers. The Taiwan side will provide preferential market access for U.S. industrial exports, including autos and auto parts, chemicals, seafood, machinery, health products, electrical products, metals, and minerals. It will also provide preferential market access for U.S. agricultural exports, including horticultural products, wheat, beef and beef products, dairy products, pork and pork products, lamb and sheep meat, tree nuts, dog and cat food, ketchup, and peanuts.
- The Taiwan side has committed to resolve longstanding non-tariff barriers affecting U.S. exports of motor vehicles, medical devices, and pharmaceuticals. For U.S. vehicles, Taiwan will remove quantitative restrictions and accept U.S. vehicles built to U.S. Federal Motor Vehicle Safety Standards, and emissions standards without additional requirements to enter Taiwan.
- Taiwan will also accept U.S. FDA marketing authorizations for medical devices and pharmaceuticals manufactured in the United States without additional requirements for entry into Taiwan’s market. Taiwan will also ensure transparency and fairness regarding reimbursement and listing of medical devices and pharmaceuticals under its health care system.
- The Taiwan side has committed to resolve and prevent non-tariff barriers to U.S. agricultural exports, including beef, pork, poultry, and processing potatoes. It will also work with the U.S. side to complete the regulatory process to allow bison meat into Taiwan.
- The U.S. side will, as appropriate, consider supporting investment financing in critical sectors in Taiwan in collaboration with U.S. private sector partners, consistent with applicable law.
- The two sides are committed to strengthening cooperation toward their shared goal of enhancing supply chain resilience and will continue to work to finalize commitments on combatting duty evasion.
- The Taiwan side plans to facilitate a long-term increase in its purchases of important U.S. goods, including USD 44.4 billion worth of liquefied natural gas and crude oil, USD 15.2 billion worth of civil aircraft and engines, and USD 25.2 billion worth of power equipment, power grids, materials, generators, storage facilities, marine equipment, steel-making equipment, and other equipment from 2025 through 2029.
- The U.S. side has also identified certain products from the goods contained in the “Potential Tariff Adjustments for Aligned Partners” Annex to Executive Order 14346 of September 5, 2025 (Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements), as amended, that will not be subject to a reciprocal tariff.
Read more here: https://ustr.gov/about/policy-offices/press-office/fact-sheets/2026/february/fact-sheet-us-taiwan-agreement-reciprocal-trade
