MARKET STRUCTURE · TAIWAN
U.S.–Taiwan reciprocal trade agreement (tariffs + purchase commitments)
Change
The U.S. and Taiwan signed a final reciprocal trade agreement confirming a 15% U.S. tariff on imports from Taiwan and setting an immediate and scheduled reduction/elimination of Taiwan tariffs on nearly all U.S. goods, alongside 2025–2029 purchase commitments for U.S. products.
Why it matters
The finalized agreement converts the earlier framework into an executed deal with specific tariff schedules and procurement commitments. Taiwan immediately removes tariffs of up to 26% on many U.S. agricultural imports (including beef, dairy, and corn) and commits to eliminate or lower tariffs on nearly all U.S. goods on a defined schedule. On the U.S. side, the agreement confirms a 15% tariff rate for imports from Taiwan, including goods from major industrial sectors referenced in the framework. The document also commits Taiwan to significantly increase purchases of U.S. goods from 2025 through 2029, including $44.4B in LNG and crude oil, $15.2B in civil aircraft and engines, and $25.2B in power grid equipment and generators (plus marine and steelmaking equipment). These terms create near-term price/access changes for specific import categories and multi-year, quantified demand signals for contracted U.S. supply.
Implications
- • Immediate price/access shift for U.S. ag exports into Taiwan (tariffs up to 26% removed).
- • Taiwan-origin imports into the U.S. face a confirmed 15% tariff rate under the deal.
- • 2025–2029 Taiwanese purchase commitments concentrate demand in U.S. LNG/oil, aircraft, grid gear.
- • Procurement schedules may tighten delivery capacity for specified U.S. industrial categories.
Who is affected
- • U.S. agricultural exporters (beef, dairy, corn) selling into Taiwan
- • Taiwan-based exporters to the U.S. subject to the 15% tariff rate
- • U.S. LNG and crude oil suppliers tied to 2025–2029 purchase commitments
- • Civil aircraft/engine and power-grid equipment manufacturers supplying Taiwan
Source
Topics
World & Politics Trade & Tariffs Business & Markets Supply Chain & Logistics Agriculture Energy & Power Oil & Gas Energy Transition