The United States and Taiwan have signed a pivotal trade deal to reduce tariffs and boost trade. The agreement lowers tariffs on Taiwanese goods from 20% to 15%, matching South Korea and Japan. In return, Taiwan will buy about $85 billion worth of US energy, aircraft, and equipment. Taiwan will cut or remove 99% of tariff barriers on many US products like auto parts, chemicals, machinery, health products, dairy, and pork. The US will exempt many Taiwanese products from tariffs too, including chalk, castor oil, pineapples, and ginseng. Taiwanese President William Lai Ching-te called the deal a “pivotal” moment. He said it secures tariff exemptions for around 2,000 Taiwanese products and lowers the average tariff to 12.3%. Lai added, "From familiar items such as Phalaenopsis orchids, tea, bubble tea ingredients (tapioca starch), and coffee, to pineapple cakes, taro, pineapples, and mangoes – these products that represent Taiwan will become more price-competitive in the US market." Lai said the deal aims to bring Taiwan’s unique flavors and brands to global markets. The deal does not cover the chip industry, a key part of Taiwan’s economy which remains a strong export sector. Taiwan’s chip exports hit a record $640.75 billion in 2025 after strong demand. The deal also does not require Taiwan to invest in the US chip sector, despite an earlier US announcement of planned Taiwanese chip investments totaling $250 billion. The US Trade Representative office noted the January agreement with Taiwan Semiconductor Manufacturing valued at $100 billion. US Trade Representative Jamieson Greer said the deal strengthens long-standing trade ties and improves supply chain resilience, especially in high-tech fields. He praised President Trump’s leadership, saying it creates strong trade and security benefits for the US. Taiwan exported nearly one-third of its goods to the US in 2025, making the US its largest market since 2000.