Taiwan and the United States have formally signed the Taiwan-US Agreement on Reciprocal Trade (ART), establishing a 15% reciprocal tariff rate on Taiwanese exports to the United States that will not be stacked on top of existing Most Favored Nation (MFN) duties, according to a statement released by Taiwan's Executive Yuan.
The deal was concluded in Washington on Feb. 12 (Eastern Time). Taiwan's delegation was led by Vice Premier Cheng Li-chiun (鄭麗君) and Chief Trade Negotiator Yang Jen-ni (楊珍妮). US Trade Representative Jamieson Greer led the US delegation.
The agreement covers tariffs, non-tariff barriers, digital trade, economic security, and commercial cooperation. The Executive Yuan said the pact will be submitted to Taiwan's legislature for approval in accordance with the Treaty-Making Act.
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Tariff Burden Falls Sharply
Before negotiations began, Taiwanese exports subject to reciprocal tariffs faced rates of “32% + MFN,” with an average tariff burden of 35.78%, the Executive Yuan said.
Following two phases of negotiations, the rate has been reduced to 15% without MFN stacking, aligning Taiwan's treatment with Japan, South Korea and the European Union, according to the government statement.
Cheng said at a briefing in Washington that the average tariff rate on Taiwanese exports to the US will fall to approximately 12.33%, compared with 35.8% when the reciprocal tariffs first took effect last April (Executive Yuan briefing; Bloomberg).
The proportion of Taiwan's exports to the US subject to reciprocal tariffs will decline to 15.5% from 24%, Cheng said. The remaining exports — currently under US Section 232 investigations — will be eligible for most-favored tariff treatment going forward, according to the Executive Yuan.
In 2024, Taiwan exported US$113.76 billion in goods to the United States, its largest export market, accounting for roughly 30% of total outbound shipments.
