U.S. and Taiwan Sign Trade Deal – Bullet Points of Deal Terms
We don’t usually post on Fridays, but the U.S. and Taiwan inked a trade deal yesterday, so you get a bonus mini-post.
Frank Fang wrote a nice, full article on the trade deal for the Epoch Times, which I’m sourcing information from to give you a quick, bullet point rundown of the deal’s details:
- Tariffs on most Taiwanese goods lowered to 15%
- 2,072 Taiwanese product items to get most-favored-nation (MFN) tariff rate: 261 are agricultural products such as Phalaenopsis orchids, tea, coffee, pineapple cakes, guava, fruit juices, jams, pineapples, and mangoes; 1,811 are industrial goods, including radio navigation equipment, communication instruments, lithium-ion batteries, pharmaceuticals, fertilizers, light oil products, and printed materials
- Taiwan’s semiconductors and related goods granted preferential treatment under Section 232 of the U.S. Trade Expansion Act
- Average tariff on Taiwanese goods to the U.S. is 12.33%
- For the U.S., preferential access to Taiwan’s market is granted for many goods, including automobiles, beef, dairy, pork, and wheat
- 0% tariffs on a wide range of American goods
- High tariffed U.S. goods to Taiwan, like 40% tariff on pork belly and 32% tariff on ham, cut to 10%
- Taiwan to remove non-tariff barriers on motor vehicles, medical devices, and pharmaceuticals
- Taiwan to accept U.S. auto safety standards
- Taiwan to increase purchasing of U.S. goods, including $44.4 billion in liquefied natural gas and crude oil, $15.2 billion in civil aircraft and engines, and $25.2 billion of generators, power, marine, and steel-making equipment
- Taiwan’s technology companies are pledged to invest $250 billion in semiconductors, energy, and artificial intelligence (AI) innovation in the U.S. with an additional $250 billion in credit guarantees by the Taiwanese government.
