The Donald Trump administration said it signed a trade deal lowering reciprocal tariffs (country-by-country tariffs) on Taiwan from 20% to 15%, while Taiwan would eliminate most of its tariffs on the United States.
The 15% reciprocal tariff the United States applies to products from Taiwan is the same level as for South Korea and Japan.
On the 12th (local time), the Office of the United States Trade Representative (USTR) said on its website, "We have concluded an agreement that strengthens economic and trade ties between the United States and Taiwan and provides mutual benefits," adding, "This will significantly lower tariffs on key sectors and products, remove non-tariff barriers, and, through investment and procurement, spur substantial expansion and growth of U.S. manufacturing."
It then referred to a memorandum of understanding (MOU) signed on the 15th of last month on Taiwan's investment in the United States, adding, "Taiwan pledged to cooperate in establishing industrial parks and industrial clusters that will significantly increase U.S. production capacity in core advanced technology sectors."
Earlier, the U.S. Department of Commerce said last month that Taiwan semiconductor and technology corporations plan to make $250 billion in new direct investments to build and expand capabilities in advanced semiconductors, energy and artificial intelligence (AI) in the United States.
In addition, the Taiwan government said it would provide $250 billion in credit guarantees to spur additional U.S.-bound investment by Taiwan corporations and support the establishment of a complete U.S. semiconductor supply chain and ecosystem. With this, Taiwan will execute investments totaling about $500 billion.
USTR also said, "Taiwan will provide preferential market access for U.S. industrial exports, including ◇ automobiles and auto parts ◇ chemicals ◇ seafood ◇ machinery ◇ health products ◇ electrical products ◇ metals ◇ minerals," adding, "For U.S. agricultural exports, including ◇ horticultural products ◇ wheat ◇ beef and beef products ◇ dairy products ◇ pork and pork products, Taiwan will also provide preferential market access."
USTR said Taiwan will expand long-term purchases of major U.S. products through 2029, planning to buy ▲ U.S. liquefied natural gas (LNG) and crude oil ($44.4 billion) ▲ civilian aircraft and engines ($15.2 billion) ▲ power equipment, power grids, materials, generators, storage facilities, marine equipment, steelmaking equipment and other equipment ($25.2 billion).
Jamieson Greer, the USTR representative, said, "This agreement will expand opportunities for U.S. farmers, ranchers, fishers, workers, small businesses and manufacturers," adding, "We expect improved resilience in our supply chains in advanced technology sectors."