U.S. and Taiwan Reach Agreement

Feb. 16, 2026
By: Hannah B. Kreinik

Taiwan and the U.S. have reached an agreement committing both parties to limiting tariffs and strengthening trade ties. The U.S. Trade Representative’s website published the complete agreement and fact sheet on the deal.

Per the Memorandum of Understanding, the largest change between the parties is that the MFN and reciprocal rates will be reduced. The tariff changes follow language from the EU and Japan agreements (see our articles here and here). In those agreements and the Taiwan agreement, originating goods with an MFN rate of lower than 15% will be subject to a combined MFN and reciprocal rate of 15%, while goods with an MFN rate of at least 15% will be subject to an additional combined rate of zero.

In addition, the agreement added some goods to the “Potential Tariff Adjustments for Aligned Partners” annex from September (see our article here). The agreement also calls for Taiwan changes to labor rights, intellectual property rights, U.S. federal standards, environmental concerns, and critical mineral supply chains. Taiwan will also limit tariffs on U.S. exports like autos, auto parts, industrial products, agricultural goods, machinery, and minerals. The agreement will become effective the day after both parties confirm that their governments have reviewed and passed any necessary “internal procedures.” The U.S. will provide preferential treatment to Taiwanese semiconductors and semiconductor equipment subject to Section 232 investigation and duties.

As the Trump administration proceeds with country-specific reciprocal side agreements, importers should reach out to Barnes, Richardson & Colburn attorneys for the latest deals.