The newly signed US Taiwan Trade Deal is poised to redraw trade routes across the Pacific, dismantling nearly all Taiwanese tariffs on American imports while setting a 15% tariff on goods flowing the other direction.
Under the reciprocal agreement announced Thursday, Taiwan will eliminate or reduce 99% of its tariff barriers on U.S. products, according to the Office of the United States Trade Representative. The deal pairs that sweeping market access with a pledge from Taiwan to purchase nearly $85 billion in American goods over the next four years.
It is a high-stakes exchange: open the gates wider for U.S. exports, and in return accept a lower — but still significant — U.S. tariff wall.
Breaking Down Tariffs — and Red Tape
Beyond tariffs, Taiwan agreed to dismantle long-standing non-tariff barriers that have complicated U.S. access to its market. That includes lifting quantitative restrictions on American vehicles and beginning to accept U.S. Food and Drug Administration marketing authorizations for medical devices and pharmaceuticals.
The shift effectively streamlines regulatory approvals, clearing a path for U.S. health care and automotive exports that had faced procedural headwinds.
At the same time, U.S. tariffs on Taiwanese goods will remain at 15% or the U.S. Most Favored Nation rate — whichever is higher. That marks a reduction from the 20% tariffs initially imposed by the Trump administration. U.S. officials also identified certain Taiwanese goods that will not face tariffs at all.
