US and Taiwan sign ‘pivotal’ deal to cut trade tariffs

Al JazeeraEN 2 min read 100% complete by John PowerFebruary 13, 2026 at 03:39 AM

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In February 2026, the United States and Taiwan finalized a trade agreement aimed at reducing tariffs and boosting trade. Taiwan agreed to purchase approximately $85 billion worth of US energy, aircraft, and equipment. In return, the US will lower the general tariff rate on Taiwanese goods from 20% to 15%, aligning it with rates for South Korea and Japan. The agreement will see Taiwan eliminate or reduce 99% of its tariff barriers, granting preferential access to US goods like auto parts and dairy. The US will exempt various Taiwanese products, including chalk and pineapples, from tariffs. Taiwanese President Lai Ching-te hailed the deal as pivotal, securing exemptions for around 2,000 Taiwanese products and aiming to increase the competitiveness of Taiwanese goods in the US market.