US and Taiwan deepen trade ties with new agreement

The United States and Taiwan have signed a comprehensive trade agreement after months of negotiations, easing tariff tensions and expanding economic cooperation. The deal is intended to reduce trade imbalances and build more resilient supply chains outside China, strengthening economic ties in the Indo-Pacific region. 

A key element of the agreement is the cap on US tariffs on Taiwanese products at a maximum of 15 percent. In return, Taiwan will grant improved market access for American industrial and agricultural goods, including vehicles and beef, while reducing various import barriers.

Taiwan also committed to significant purchases of US commodities, including liquefied natural gas and crude oil valued at approximately 44.4 billion US dollars. Additional investments in infrastructure, energy and industrial facilities are expected. Analysts view these commitments as a boost to US exports and to Taiwan’s energy security, as the island relies heavily on imports.

The agreement carries particular importance for the technology sector. Taiwan is one of the world’s leading semiconductor producers, supplying chips essential for artificial intelligence, electronics and industrial applications. Closer cooperation is expected to make supply chains more robust and less vulnerable to geopolitical disruptions.

Politically, the deal is widely seen in the context of the broader US-China rivalry. Strengthening Taiwan’s economic ties with Washington reinforces the US strategic position in the Asia-Pacific region while promoting alternatives to Chinese manufacturing networks.

SK