US trade deal to lower tariffs on Taiwan to 15%

The Trump administration has reached a trade deal with Taiwan, with Taiwan agreeing to remove or reduce 99 per cent of its tariff barriers, the office of the US Trade Representative said.

The agreement comes as the US remains reliant on Taiwan for its production of computer chips, the exporting of which contributed to a trade imbalance of nearly $ 127 billion during the first 11 months of 2025, according to the Census Bureau. Taiwan's exports to the US will be taxed at a 15 per cent rate or the US government's "Most Favoured Nation" rate, the USTR's office said on Thursday. The 15 per cent rate is the same as that levied on other US trading partners in the Asia-Pacific region, such as Japan and South Korea.