Washington D.C. – A new trade agreement between the United States and Taiwan went into effect on Thursday, February 13, 2026, establishing reciprocal tariffs of 15% on a range of goods and aiming to strengthen economic ties between the two nations. The agreement, signed in Washington, D.C., is now awaiting review by Taiwan’s Legislative Yuan.
The deal comes as Taiwan exports approximately 30% of its goods to the U.S. Market, making the United States its largest trading partner. According to Taiwan’s Economic Institute president, Chang Chien-yi, the agreement represents a significant step, but also requires careful consideration by Taiwanese lawmakers. “The question is whether Taiwan wants the U.S. Market,” Chang said, suggesting legislators weigh the implications carefully.
Under the agreement, tariffs on 2,072 Taiwanese products exported to the U.S. Have been eliminated, totaling $9.9 billion. An additional 8,192 items will see tariffs reduced to 15%, not stacked on top of existing Most Favored Nation (MFN) rates, representing $17.6 billion in trade. This structure aims to level the playing field for Taiwanese companies competing with those from Japan, South Korea, and the European Union.
Chang Chien-yi likened the agreement to “paying for lunch,” acknowledging that access to the U.S. Market comes at a cost, but asserting that Taiwan secured favorable terms. He noted that the price Taiwan is paying is lower than that of other countries. Yahoo News reported on his comments.
Although the initial phase of negotiations has concluded, challenges remain. A second phase will focus on opening up key markets like agriculture, and automobiles. The agreement also hinges on approval from Taiwan’s Legislative Yuan, where opposition parties and industry concerns could impact its progress. The United Daily News reports that the $250 billion investment commitment from the U.S. Is likely to be met, with significant contributions from companies like TSMC and investments in Alaska’s natural gas sector.
However, Chang Chien-yi cautioned that the most challenging aspects of the trade agreement are yet to come. Negotiations surrounding agricultural products and automobiles will be particularly sensitive, potentially impacting domestic industries. The agreement’s success also depends on navigating the political landscape in Taiwan, as legislative approval is crucial.
The agreement also has implications for the automotive industry. One automotive analyst estimates that the elimination of tariffs on U.S. Vehicles could result in savings of up to $80,000 for consumers, though this has been met with some skepticism. The China Times has more on the potential impact.
The move underscores the growing economic relationship between the U.S. And Taiwan, even as geopolitical tensions in the region remain high. The case highlights the complexities of international trade negotiations and the necessitate for careful consideration of both economic benefits and potential challenges.
