The Trump administration on Thursday finalized a reciprocal trade agreement with Taiwan that locks in a 15 percent tariff rate and secures commitments from Taipei to eliminate most duties on U.S. goods, the Office of the U.S. Trade Representative announced.
The deal follows an agreement sealed last month that committed Taiwan to funnel up to $500 billion in direct investment and credit guarantees aimed to fuel the growth of the U.S. artificial intelligence and semiconductor manufacturing sectors.
“President Trump’s leadership in the Asia-Pacific region continues to generate prosperous trade ties for the United States with important partners across Asia, while further advancing the economic and national security interests of the American people,” U.S. Trade Representative Jamieson Greer said in a statement. “The Agreement on Reciprocal Trade with Taiwan will eliminate tariff and non-tariff barriers facing U.S. exports to Taiwan, furthering opportunities for American farmers, ranchers, fishermen, workers, small businesses, and manufacturers.”
The agreement delivers a needed boost to the stability of U.S.-Taiwan ties at a time when there are growing doubts about the Trump administration’s commitment to the island. Over the past few weeks, the administration has gone quiet on Taiwan’s relevance to the U.S. defense strategy in the Indo-Pacific. That has sparked concern among China hawks on Capitol Hill that the administration is soft-pedaling defense ties to the Taiwan to avoid antagonizing Beijing ahead of a planned summit between Trump and China’s leader, Xi Jinping, in April.
