Taiwan's premier praises ‘hard-won' trade agreement with US

HONG KONG

Gantry cranes and shipping containers are seen at the port in Keelung on Jan. 16, 2026.

Taiwanese Premier Cho Jung-tai hailed on Jan. 16 the trade deal struck with the United States that lowers the tariff on the democratic island's shipments to 15 percent.

"These results underscore that the progress achieved so far has been hard-won," Cho said, praising Taiwan's negotiators for "delivering a well-executed home run."

The United States said on Jan. 15 that it has reached a deal with Taiwan to reduce tariffs on goods from the democratic island, while increasing investments by Taiwanese companies in American tech industries.

Under the deal, Washington will lower tariffs on Taiwanese goods to 15 percent, down from the current 20 percent "reciprocal" rate meant to address US trade deficits and practices that the country deems unfair.

Sector-specific tariffs on Taiwanese auto parts, timber, lumber and wood products will also be capped at 15 percent, the U.S. Commerce Department said.

Meanwhile, Taiwanese chip and tech businesses are set to make "new, direct investments totaling at least $250 billion" to build and expand capacity in areas like advanced semiconductors and artificial intelligence in the United States.

Taiwan will also provide "credit guarantees of at least $250 billion to facilitate additional investment by Taiwanese enterprises," the Commerce Department added.

The agreement comes after months of negotiations.