U.S. and Taiwanese flags are seen in San Francisco, California, Jan. 28, 2026.
Washington and Taipei have signed a trade deal lowering tariffs on Taiwanese exports to 15%, on par with those on Asian allies Japan and South Korea, while the island will open its market for U.S. goods.
Taiwan will remove or reduce 99% of tariff barriers on U.S. goods, as well as provide "preferential market access" for U.S. industrial and agricultural exports. These include autos, beef products and minerals.
Taiwan also plans to purchase over $84 billion in U.S. goods from 2025 to 2029, including liquefied natural gas and crude oil, as well as aircraft and power equipment.
The office of the U.S. Trade Representative said that Taiwan had committed to "resolve longstanding non-tariff barriers," such as accepting U.S. vehicles built to U.S. Federal Motor Vehicle Safety Standards without any additional requirements.
This deal was first announced in January when Taiwanese chip and technology companies committed to invest at least $250 billion in production capacity in the U.S., backed by an equal amount of government credit "to facilitate additional investment by Taiwanese enterprises."
However, Taiwan and the U.S. have shared differing views on chip supply chains.
The goal is to bring 40% of Taiwan's entire semiconductor supply chain to the U.S. during U.S. President , Commerce Secretary Howard Lutnick told CNBC last month. He also said that Taiwan-based chip companies that don't build in the U.S are likely to face a 100% tariff.
However, Taiwan has pushed back on that proposal, telling Washington that moving 40% of the island's semiconductor supply chain to the U.S. was "impossible," according to Taipei's top tariff trade negotiator.
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