Trump administration reaches trade deal to lower Taiwan’s tariff barriers

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 yesterday informed that US Trade Representative Jamieson Greer and Taiwan’s Vice Premier Li-chiun Cheng signed the reciprocal agreement in Washington.

Taiwan’s exports to the US will be taxed at a 15 per cent rate or the US government’s Most Favoured Nation rate. Under the deal, Taiwan will make investments of 250 billion US Dollar in the US industries such as computer chips, artificial intelligence applications and energy.

The agreement would make it easier for the US to sell autos, pharmaceutical drugs and food products in Taiwan.

The deal comes ahead of President Donald Trump’s planned visit to China in April and suggests a deepening economic relationship between the US and Taiwan.