Trump administration reaches a trade deal to lower Taiwan’s tariff barriers

WASHINGTON (AP) — The Trump administration reached a trade deal with Taiwan on Thursday, with Taiwan agreeing to remove or reduce 99% of its tariff barriers, the office of the U.S. Trade Representative said.

The agreement comes as the U.S. remains reliant on Taiwan for its production of computer chips, the exporting of which contributed to a trade imbalance of nearly $127 billion during the first 11 months of 2025, according to the Census Bureau.

Taiwan’s exports to the U.S. will be taxed at a 15% rate or the U.S. government’s “Most Favored Nation” rate, the USTR’s office said.

Trade Representative Jamieson Greer attended the signing of the reciprocal agreement, which occurred under the auspices of the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States. Taiwan’s Vice Premier Li-chiun Cheng and its government minister Jen-ni Yang also attended the signing.

The deal comes ahead of President Donald Trump’s planned visit to China in April and suggests a deepening economic relationship between the U.S. and Taiwan.

Taiwan is a self-ruled democracy that China claims as its own territory, to be annexed by force if necessary. Beijing prohibits all countries it has diplomatic relations with — including the U.S. — from having formal ties with Taipei.