U.S. and Taiwan reach trade deal to lower tariffs

The U.S. and Taiwan signed a reciprocal trade agreement in which Taiwan agreed to remove or reduce roughly 99% of its tariff barriers and Taiwan’s exports to the U.S. would face a 15% rate or the U.S. Most Favoured Nation rate. Taiwan will submit the pact and its investment plans to its legislature for approval.

The U.S. and Taiwan have signed a reciprocal trade agreement reported by the U.S. Trade Representative's office. The pact would cut or remove about 99% of Taiwan's tariff barriers and set a 15% tariff rate for Taiwan's exports to the U.S., or the U.S. Most Favoured Nation rate. The agreement is described as including large Taiwanese investments in U.S. industries such as computer chips, artificial intelligence applications and energy. Taiwan's government said it will submit the deal and related investment plans to its legislature for approval. Key details: - The USTR said Taiwan agreed to remove or reduce roughly 99% of its tariff barriers toward the United States. - Taiwan's exports to the U.S. will be taxed at a 15% rate or the U.S. government's Most Favoured Nation rate, according to the USTR's office. - Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick attended the signing, along with Taiwan's Vice-Premier Li-chiun Cheng and government minister Jen-ni Yang. - The deal is reported to include Taiwanese investments of US$250 billion in U.S. industries, with up to an additional US$250 billion in credit guarantees for smaller firms; the article mentions TSMC has committed US$165 billion in U.S. investments. - U.S. officials said the agreement is intended to support expanded domestic production of advanced technologies such as semiconductors and came ahead of a planned U.S. presidential visit to China in April. Summary: The pact is presented as a measure to lower trade barriers and encourage substantial Taiwanese investment in U.S. technology and energy sectors, with a particular focus on semiconductor production. Taiwan must still obtain legislative approval for the agreement and its investment plans, and implementation will depend on those reviews.