Trump Administration Reaches Trade Deal to Lower Taiwan's Tariff Barriers

Agreement aims to boost U.S. exports and investments in Taiwan's semiconductor industry

Feb. 12, 2026 at 9:39pm

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The Trump administration has reached a trade deal with Taiwan, where Taiwan has agreed to remove or reduce 99% of its tariff barriers. The deal also includes Taiwan committing to $250 billion in investments in U.S. industries like computer chips, AI, and energy, as well as providing $250 billion in credit guarantees for smaller businesses to invest in the U.S. In return, the U.S. will give preferential treatment to Taiwan regarding potential tariffs on computer chips and semiconductor manufacturing equipment.

Why it matters

This trade deal represents a deepening economic relationship between the U.S. and Taiwan, an important partner in the Asia-Pacific region. It aims to boost U.S. exports and investments in Taiwan's critical semiconductor industry, which has a large trade surplus with the U.S. The deal also helps advance the Trump administration's economic and national security interests in the region.

The details

Under the agreement, Taiwan will remove or reduce 99% of its tariff barriers, with exports to the U.S. taxed at a 15% rate or the U.S. government's 'Most Favored Nation' rate. Taiwan will also make $250 billion in investments in U.S. industries like computer chips, AI, and energy, and provide $250 billion in credit guarantees to help smaller businesses invest in the U.S. In return, the U.S. will give preferential treatment to Taiwan regarding potential tariffs stemming from a Section 232 investigation on computer chip and semiconductor manufacturing equipment imports.

  • The trade deal was reached on Thursday, February 12, 2026.
  • The agreement comes ahead of President Trump's planned visit to China in April 2026.

The players

Jamieson Greer

U.S. Trade Representative who attended the signing of the reciprocal agreement.

Howard Lutnick

U.S. Commerce Secretary who attended the signing of the reciprocal agreement.

Li-chiun Cheng

Taiwan's Vice Premier who attended the signing of the reciprocal agreement.

Jen-ni Yang

Taiwan's government minister who attended the signing of the reciprocal agreement.

TSMC

Taiwan's chip-making giant that is expected to be a key investor in the U.S. under the deal, committing to $165 billion in investments including fabrication plants and a major R&D center.

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What they’re saying

“President Trump's leadership in the Asia-Pacific region continues to generate prosperous trade ties for the United States with important partners across Asia, while further advancing the economic and national security interests of the American people.”

— Jamieson Greer, U.S. Trade Representative (Statement)

What’s next

The deal and Taiwan's investment plans will be submitted to Taiwan's legislature for approval.

The takeaway

This trade agreement represents a strategic move by the Trump administration to deepen economic ties with Taiwan, a key partner in the Asia-Pacific region, while also boosting U.S. exports and investments in Taiwan's critical semiconductor industry to help address the trade imbalance.