Taiwan and the United States formally signed theTaiwan–US Agreement on Reciprocal Trade (ART) on February 12, establishing a 15% reciprocal tariff rate that will not be stacked on top of existing Most Favored Nation (MFN) duties.
Under the deal, American passenger cars will enter Taiwan tariff-free, while light commercial vehicles will maintain certain tariff levels. Import quotas on US-specification vehicles will also be eliminated.
Vice Premier Cheng Li-chun (鄭麗君) led Taiwan's negotiating team to Washington on February 10, where talks were concluded with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, according to an Executive Yuan statement.
President Lai Ching-te (賴清德) addressed the agreement in a Facebook posted on Friday, saying Taiwan's negotiating team adhered to four core principles and achieved six major objectives during the talks.
Lai said Taiwan secured exemptions from reciprocal tariffs on more than 2,000 export product categories to the United States. When those exemptions are included, he said, the average tariff rate on Taiwanese exports to the US will fall to 12.33%.
Lai Frames Deal as Strategic Breakthrough
Describing Taiwan as the United States' sixth-largest trade deficit partner, Lai said the negotiations were closely watched from the outset and conducted under significant pressure. He credited Cheng's team with safeguarding national interests and key industries while advancing broader strategic goals, including enhancing Taiwan's industrial competitiveness, strengthening supply chain resilience, and deepening high-tech strategic cooperation with the US.
Beyond the 15% reciprocal tariff framework, Lai said Taiwan secured preferential treatment under Section 232 tariff measures.
He highlighted that signature Taiwanese products — including orchids, tea, tapioca flour used in bubble tea, and pineapple cakes — received tariff exemptions, which he said would improve their competitiveness in the US market.
The negotiating team also maintained existing tariff structures or secured partial reductions for sensitive sectors such as rice, poultry and oysters, citing the need to protect domestic agriculture and food security.
Lai said Taiwan had obtained more favorable tariff treatment than other countries facing similar market-opening requirements, describing the outcome as among the most preferential terms granted to countries with which the US runs a trade surplus.
He expressed confidence that the agreement would help integrate Taiwan more closely into global supply chains while maintaining international standards to safeguard public health and consumer rights.
According to Lai, the pact will support the development of a mutually beneficial and complementary economic framework between Taiwan and the United States, providing Taiwan with greater flexibility to expand its global footprint.
