The United States is navigating a complex trade landscape in Asia, marked by a landmark new agreement with Taiwan and simmering tensions with longtime ally South Korea over a stalled trade deal. On February 12, 2026, the U.S. and Taiwan signed an Agreement on Reciprocal Trade (ART), the most significant trade deal between the two in decades. According to the Global Taiwan Institute, the agreement aims to eliminate or reduce up to 99% of tariff barriers.

 
Under the terms of the ART, the U.S. will lower its tariffs on Taiwanese imports under the International Emergency Economic Powers Act (IEEPA) from 20% to 15%. In return, Taiwan will immediately drop its 17.5% tariff on American passenger vehicles to zero and reduce tariffs on sensitive agricultural products by at least 50%. The deal also includes provisions for Taiwan to align its export controls with U.S. rules on semiconductors.

 
This move toward closer ties with Taipei contrasts sharply with recent friction in Washington’s relationship with Seoul. In late January, South Korea’s Industry Minister, Kim Jung-kwan, and Trade Minister, Yeo Han-koo, traveled to Washington following threats from President Donald Trump to raise tariffs on South Korean goods, as reported by Reuters. The U.S. has expressed frustration over delays in South Korea’s parliament passing legislation to implement a revised bilateral trade deal. President Trump warned he could increase tariffs on South Korean products from 15% back to 25% in response to the legislative holdup.

 
Meanwhile, on the domestic front, a bipartisan effort is underway to dismantle trade barriers for American agricultural exporters. On February 25, Representatives David Valadao and Suzanne Bonamici reintroduced the Specialty CROP Act. The bill aims to improve the annual U.S. Specialty Crops Trade Issues Report by requiring it to highlight specific tariff and non-tariff barriers that hinder U.S. exports and detail government actions being taken to resolve them. Senator Ron Wyden, a supporter, stated the bill would help rural Americans by “identifying unfair foreign trade barriers and creating specific plans to cut through that red tape.”

 

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