The administration of former US President Donald Trump has reached a major trade agreement with Taiwan, with Taipei agreeing to remove or reduce 99 per cent of its tariff barriers.
The Office of the United States Trade Representative announced that US Trade Representative Jamieson Greer and Taiwan’s Vice Premier Li-chiun Cheng signed the reciprocal agreement in Washington.
Under the deal, Taiwan’s exports to the United States will be taxed at a 15 per cent rate or the US government’s Most Favoured Nation (MFN) rate. In return, Taiwan has committed to investing 250 billion US dollars in key American industries, including semiconductor manufacturing, artificial intelligence applications and energy.
The agreement is expected to ease market access for US products in Taiwan, making it simpler for American automakers, pharmaceutical companies and food exporters to expand their presence in the Taiwanese market.
The trade pact comes ahead of Donald Trump’s planned visit to China in April and signals a deepening economic partnership between the United States and Taiwan, a move likely to carry strategic and geopolitical significance in the Indo-Pacific region.
