ISTANBUL

The US and Taiwan signed an agreement on reciprocal trade Thursday, lowering tariffs on Taiwanese exports to 15%, also aiming to strengthen supply chain cooperation.

The signing was overseen by US Trade Representative Jamieson Greer under the auspices of the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the US, according to a statement.

Taiwan will give American industrial and agricultural exports "preferential market access" and "eliminate or reduce" 99% of tariffs on American goods. These consist of minerals, cattle products, and automobiles.

In addition, Taiwan intends to spend more than $84 billion on US products between 2025 and 2029, including power equipment, aircraft, and liquefied natural gas and crude oil.

According to the US Trade Representative's office, Taiwan has pledged to "resolve longstanding non-tariff barriers," such as allowing American automobiles manufactured in accordance with the Federal Motor Vehicle Safety Standards of the United States without any further conditions.

Greer said the agreement would eliminate tariff and non-tariff barriers facing US exports to Taiwan, creating new opportunities for American farmers, ranchers, fishermen, workers, small businesses and manufacturers.

He added that the deal builds on longstanding economic ties and is expected to enhance supply chain resilience, particularly in high-technology sectors.

Greer credited US President Donald Trump with strengthening US trade engagement in the Asia-Pacific region, saying the administration’s approach advances both economic and national security interests.

Taiwanese leader Lai Ching-te hailed the agreement.

"This is a pivotal moment for Taiwan's economy and industries to ride the winds of change and undergo a major transformation," he wrote on his Facebook page.

He added that it will optimize the Taiwan–US economic and trade framework, build trustworthy industrial supply chains and establish a Taiwan–US high-tech strategic partnership.

US officials said the agreement reflects a shared commitment to fair and balanced trade and deeper economic cooperation between Washington and Taipei.

The agreement was initially made public in January when Taiwanese technology and chip businesses pledged to invest a minimum of $250 billion in US production capacity, supported by an equivalent amount of government credit "to facilitate additional investment by Taiwanese enterprises."