US and Taiwan Finalize Trade Pact

Deal to cut tariffs, boost market access and investments

Published on Feb. 12, 2026

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The United States and Taiwan have finalized a new trade agreement that will cut tariffs, increase market access for American products in Asia, and channel billions of dollars into US energy and technology projects.

Why it matters

This deal represents a significant economic and diplomatic win for both the US and Taiwan, strengthening trade ties between the two countries at a time of heightened geopolitical tensions in the region.

The details

Under the terms of the agreement, Taiwan has pledged to purchase over $44 billion worth of liquefied natural gas and crude oil from the US. Taiwan will also open its market further to American goods, including meat products, dairy, wheat, medical products, and automobiles. Additionally, Taiwan is committing to buy around $15 billion in American civil aircraft and parts, as well as invest roughly $25 billion in US power-generation equipment.

  • The trade deal was finalized on February 13, 2026 in Washington, D.C.

The players

United States

A major global economy and Taiwan's key strategic partner.

Taiwan

An important economic and political ally of the US in the Asia-Pacific region.

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What’s next

The agreement still needs to be ratified by the US Congress and Taiwan's legislature before it can fully take effect.

The takeaway

This trade pact represents a significant strengthening of economic ties between the US and Taiwan, which could have broader geopolitical implications as both countries seek to counter China's regional influence.