US and Taiwan Deepen Economic Ties with New Trade Agreement, Slashing Tariffs

The United States and Taiwan signed a significant trade agreement on February 13, 2026, deepening their commercial relationship and aiming to bolster supply chain resilience, particularly in high-technology sectors. Under the pact, Washington will lower tariffs on a wide range of Taiwanese exports from 20% to 15%, a move that puts Taiwan on equal footing with competitors like South Korea and Japan, according to The Times of India and Reuters.

In return, Taiwan has committed to increasing its purchases of American goods and boosting investment in the U.S. technology industry. Taiwanese Vice Premier Cheng Li-chiun, who attended the signing in Washington, stated that the deal grants Taiwan “Most Favored Nation” treatment, enhancing its competitive position. The agreement also specifies that Taiwanese semiconductors and related products will receive the most favorable treatment under U.S. law, as reported by the Taipei Times.

The deal includes substantial commitments from Taiwan to purchase billions of dollars worth of American products between 2025 and 2029, including liquefied natural gas, crude oil, civil aircraft, and power grid equipment. For American businesses, the agreement is set to eliminate or reduce tariffs on many U.S. agricultural and industrial exports to Taiwan. U.S. Trade Representative Jamieson Greer said the pact will create new opportunities for American farmers, workers, and manufacturers while strengthening the longstanding economic relationship between the two partners.

The Executive Yuan in Taipei framed the agreement as a step toward building a “Taiwan-US high-tech strategic partnership” focused on technological innovation and economic security. The pact aims to bring predictability to a critical bilateral economic relationship and foster closer ties, though some analysts note that differences over the trade balance and semiconductor manufacturing may persist.