TAIPEI (Taiwan News) — President Lai Ching-te (賴清德) on Friday announced that Taiwan and the US have signed a trade pact, calling it a pivotal moment for the economy and industries as it cuts the average tariff on exports to the US to 12.33%.
The Cabinet said that Vice Premier Cheng Li-chun (鄭麗君) led the negotiating team on the US-Taiwan Agreement on Reciprocal Trade, per CNA. The deal was then signed by Alexander Yui (俞大㵢), Taiwan’s representative to the US, and Ingrid Larson, managing director of the American Institute in Taiwan's Washington Office.
Lai said that, as the sixth-largest source of the US trade deficit, Taiwan’s negotiations drew intense attention from the outset. He said the talks achieved six major goals.
These include enhancing international competitiveness, ensuring food security and industrial resilience, protecting public health, optimizing the Taiwan-US economic and trade framework, establishing reliable supply chains, and cementing a strategic high-tech partnership between Taipei and Washington.
Lai said that beyond securing a 15% tariff rate on Taiwan exports and most-favored treatment under Section 232 of the Trade Expansion Act, Taiwan won exemptions for 2,072 export items. With these exemptions factored in, the average tariff on exports to the US will drop to 12.33%.
He said that products familiar to consumers, including moth orchids, tea, tapioca starch used in bubble tea, coffee, pineapple cakes, taro, pineapples, and mangoes, will become more price-competitive in the US. The goal, he said, is not only to export Taiwan’s flavors but also to bring Taiwanese brands to the international market.
Lai said the government also maintained its commitment to food security. Key products such as rice, chicken, and oysters will maintain existing tariff levels on US imports or see only partial reductions, safeguarding Taiwan’s agriculture and strategic industries.
The president said the outcome demonstrates that, amid global market liberalization, Taiwan has secured greater advantages than other countries, removing constraints on Taiwan’s industries. In terms of tariffs, Taiwan obtained the most favorable treatment among countries with trade surpluses with the US.
He added that Taiwan has also aligned with international standards, enabling its industries to integrate seamlessly into global supply chains and protect public health and rights.
