US and Taiwan Sign Reciprocal Trade Agreement

The United States and Taiwan signed a reciprocal trade agreement on Thursday in Washington, reducing tariffs on Taiwanese exports to the United States and committing Taiwan to substantial investments in American industries, amid efforts to address a growing trade imbalance and bolster supply chain security.

The deal lowers the general tariff rate on Taiwanese goods entering the U.S. from 20 percent to 15 percent, aligning it with rates applied to other Asia-Pacific partners such as Japan and South Korea. In exchange, Taiwan agreed to eliminate or reduce 99 percent of its own tariff barriers, providing preferential market access for a wide array of U.S. products including auto parts, chemicals, machinery, pharmaceuticals, dairy, and pork. The U.S. will exempt numerous Taiwanese items from tariffs, such as pineapples, ginseng, tea, coffee, and orchids, benefiting around 2,000 products in total.

Taiwanese President William Lai Ching-te described the agreement as a pivotal moment for the island's economy, stating on social media that it would bring the effective average tariff rate on Taiwanese exports to 12.3 percent when accounting for various exemptions. "From familiar items such...