MARKET STRUCTURE · TAIWAN

US–Taiwan reciprocal trade pact locks in 15% US tariff and Taiwan purchase commitments

The Hindu 13 Feb · 10:37 AM
Change
The U.S. and Taiwan signed a final reciprocal trade agreement on Feb. 12, 2026 that confirms a 15% U.S. tariff on imports from Taiwan and sets a schedule for Taiwan to eliminate or reduce tariffs on nearly all U.S. goods, including immediate removal of up to 26% tariffs on many U.S. agricultural imports.
US–Taiwan reciprocal trade pact locks in 15% US tariff and Taiwan purchase commitments
Why it matters
Taiwan importers of U.S. beef, dairy and corn face an immediate landed-cost drop, changing near-term sourcing and pricing decisions in Taiwan’s food supply chain. The confirmed 15% U.S. tariff rate becomes the operative cost assumption for Taiwan-origin exports to the U.S., affecting contract pricing and margin planning for 2026 shipments. Taiwan’s 2025–2029 purchase commitments ($44.4B LNG/crude, $15.2B civil aircraft/engines, $25.2B grid equipment/generators plus marine and steelmaking equipment) create a multi-year demand signal that can pull forward U.S. supplier capacity allocation and financing tied to those categories.
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