Stock Markets February 12, 2026

U.S. and Taiwan Finalize Reciprocal Trade Deal, Set Purchase Targets and Tariff Schedules

Agreement fixes U.S. tariff on Taiwanese imports at 15% and obligates Taiwan to step up purchases of U.S. goods from 2025-2029

By Priya Menon
U.S. and Taiwan Finalize Reciprocal Trade Deal, Set Purchase Targets and Tariff Schedules

U.S. officials have signed a finalized reciprocal trade pact with Taiwan that establishes a 15% U.S. tariff on Taiwanese imports and binds Taiwan to a timetable for cutting or removing tariffs on most U.S. goods. The agreement includes specific purchase commitments for 2025-2029 across energy, aerospace, power equipment and heavy industry, and immediately ends many Taiwanese agricultural levies.

Key Points

  • The agreement sets a 15% U.S. tariff on imports from Taiwan and requires Taiwan to adopt a timetable to remove or lower tariffs on almost all U.S. goods.
  • Taiwan committed to large purchase targets for 2025-2029, including $44.4 billion of liquefied natural gas and crude oil, $15.2 billion of civil aircraft and engines, and $25.2 billion of power grid equipment, generators, marine and steelmaking equipment.
  • The deal immediately removes Taiwanese tariffs of up to 26% on many U.S. agricultural imports, including beef, dairy and corn, and aligns Taiwan’s tariff level with South Korea and Japan.

WASHINGTON, Feb 12 - Officials representing the Trump administration completed a final reciprocal trade agreement with Taiwan that cements a 15% U.S. tariff rate on imports from Taiwan while obligating Taiwan to adopt a schedule to eliminate or reduce tariffs on nearly all U.S. goods.

The document, published by the U.S. Trade Representative’s office, spells out Taiwan’s commitments to substantially increase purchases of U.S. products between 2025 and 2029. Those purchase commitments include $44.4 billion in liquefied natural gas and crude oil, $15.2 billion in civil aircraft and engines, and $25.2 billion in power grid equipment and generators, marine equipment and steelmaking equipment.

The finalized text adds technical provisions and specifics to an agreement first reached in January. That earlier accord reduced tariffs on Taiwanese goods - including those from the island’s major semiconductor sector - to 15% from the 20% level that was originally imposed by the Trump administration. The current deal places Taiwan on par with its nearest Asian export rivals, South Korea and Japan, on the tariff front.

Under the agreement, Taiwan will immediately remove tariffs of up to 26% on a range of agricultural imports from the United States, covering beef, dairy, corn and other items.

U.S. Trade Representative Jamieson Greer said the pact will expand export prospects for U.S. farmers, ranchers, fishermen, workers and manufacturers. "This agreement also builds on our longstanding economic and trade relationship with Taiwan and will significantly enhance the resilience of our supply chains, particularly in high-technology sectors," Greer added.


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The finalized trade instrument therefore combines tariff-rate decisions, a timetable for Taiwanese tariff liberalization on U.S. goods, concrete multi-year purchase commitments across several sectors and the immediate lifting of significant agricultural levies.

Key sectors directly referenced in the agreement include energy (liquefied natural gas and crude oil), civil aerospace (aircraft and engines), power and utilities (grid equipment and generators), marine and steelmaking equipment, semiconductors by implication through tariff alignment, and U.S. agriculture (beef, dairy, corn and other imports).

Risks

  • Implementation risk - the agreement establishes a schedule for Taiwan to eliminate or reduce tariffs, which depends on Taiwan following the set timetable; markets and sectors such as agriculture, aerospace and energy are exposed to execution uncertainty.
  • Reliance on purchase commitments - the pact specifies large purchase targets for 2025-2029; if those commitments are not fully realized, expected export gains for U.S. energy, aerospace, industrial equipment and related manufacturers may be lower than anticipated.
  • Supply-chain resilience remains a stated objective but its improvement depends on practical outcomes in high-technology sectors; therefore, actual enhancement to supply-chain robustness is contingent on execution of the agreement’s provisions.

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