According to official figures, Taiwan intends to import an estimated $44.4 billion worth of liquefied natural gas and crude oil, $15.2 billion in civil aircraft and engines, and $25.2 billion in essential power grid and industrial equipment between 2025 and 2029.
In a significant development that reshapes trans-Pacific commerce, the United States and Taiwan have formally concluded a comprehensive trade agreement that cements a 15 per cent tariff regime on Taiwanese exports and binds Taipei to substantially increase its purchases of American goods over the next several years. This accord, announced in Washington on 12 February 2026, marks a notable milestone in bilateral economic relations and underscores a mutual commitment to deeper commercial integration at a time of mounting geopolitical and supply-chain pressures.
Under the newly sealed framework, the United States has agreed to maintain its tariff on Taiwanese imports at 15 per cent, a reduction from the 20 per cent rate originally applied. This brings Taiwanese goods into parity with those from key Asian trading partners such as Japan and South Korea and reflects Washington’s intent to foster more balanced and predictable trade conditions. In exchange, Taiwan has pledged to slash or eliminate duties on nearly all American exports, effectively opening its markets to a myriad of U.S. products ranging from agricultural commodities to advanced industrial machinery.
One of the clearest indications of the accord’s economic heft is Taipei’s commitment to significantly boost its procurement of U.S. goods between 2025 and 2029. According to official figures, Taiwan intends to import an estimated $44.4 billion worth of liquefied natural gas and crude oil, $15.2 billion in civil aircraft and engines, and $25.2 billion in essential power grid and industrial equipment during this period. These commitments are designed not merely to recalibrate the trade balance, but also to support broader supply-chain resilience and energy security objectives shared by both economies.
The agreement also incorporates tailored provisions to enhance market access and lower trade barriers in specific sectors. Agricultural exports such as beef, dairy products and corn will see the immediate elimination of tariffs previously as high as 26 per cent, while the removal or reduction of non-tariff barriers for U.S. automobiles, medical devices and pharmaceuticals is expected to further stimulate bilateral commerce. At the same time, Taiwan secured exemptions for over two thousand product items, reducing the average effective tariff on U.S. goods to around 12.33 per cent.
Taiwanese and American officials alike have emphasised the agreement’s strategic importance beyond mere tariff adjustments. U.S. Trade Representative Jamieson Greer characterised the deal as a reinforcement of the longstanding economic and trade relationship between the two partners, one that will expand opportunities for American producers and foster resilience in critical supply chains, particularly in high-technology sectors. From Taiwan’s perspective, President Lai Ching-te described the pact as “pivotal” for the island’s industries, asserting that the enhanced trade framework would optimise economic cooperation and fortify strategic commercial partnerships.
The pact arrives amid broader shifts in global trade dynamics, where the United States has been actively recalibrating its tariff and investment strategies to support domestic industries, secure diversified supply networks, and respond to competitive pressures from other economic blocs. For Taiwan, whose export-driven economy is heavily anchored in semiconductors and technology components, the treaty offers an opportunity to secure preferential access while attracting investment and securing long-term demand from one of its most consequential trading partners.
Beyond trade flows, the agreement signals a deeper intertwining of economic policy and strategic cooperation. Taiwanese firms have pledged considerable investment intended to enhance production capacity in the United States, particularly in semiconductors, energy, artificial intelligence and advanced manufacturing. While specifics on investment mechanisms remain subject to further discussion and ratification processes, this component of the accord highlights the evolving role of bilateral economic engagement as a tool for fostering innovation-led growth.
Yet the treaty is not immune to political considerations. It must still secure legislative approval in Taiwan’s parliament, where a diverse array of views on trade and industrial policy could shape the ultimate implementation timeline. Moreover, the broader geopolitical context, especially cross-strait relations and regional economic competition, adds a layer of complexity to how this agreement will be perceived and operationalised in the years ahead.
