Premier Cho Jung-tai convened a press conference on Friday to announce the formal signing of a Taiwan-U.S. Agreement on Reciprocal Trade (ART). He expressed special gratitude toward Vice Premier Cheng Li-chiun and Minister without Portfolio Yang Jen-ni for leading Taiwan's negotiating delegation and faithfully carrying out the mandate entrusted to them by President Lai Ching-te and the people of Taiwan throughout the 10 months of bilateral talks. Premier Cho stated that the negotiating team successfully upheld the interests of the nation and its industries, marking the start of a new chapter in Taiwan-U.S. economic, trade and technological cooperation. He furthered voiced his sincere hope that the Legislative Yuan will lend its support by conducting a thorough review and approving the passage of the ART, thereby completing the final stage of the process.
Premier Cho noted that the latest negotiations achieved for Taiwan a reduced reciprocal tariff rate of 15% exempt from most-favored-nation (MFN) rate stacking, in addition to most preferential tariff treatment under Section 232 of the Trade Expansion Act of 1962. He described the 15% rate as practically a new global benchmark for U.S. tariffs, placing Taiwan on equal competitive footing with Japan and the European Union.
Under the ART, Taiwan will also implement tariff reductions on selected U.S. imports, the premier said. According to a think tank assessment commissioned by the Ministry of Economic Affairs, economic projections for Taiwan's industrial output, GDP and industrial employment—previously expected to decline—are now forecast to shift into positive growth, demonstrating that the overall outcome of the negotiations is favorable to Taiwan and will deliver tangible benefits.
The premier stated that Taiwan's exports to the U.S. totaled US$113.76 billion in 2024. Of that amount, 76%—equivalent to US$86.2 billion—consisted of products subject to Section 232 tariffs, including high-tech, semiconductor, and information and communications technology (ICT) products, all of which have now secured most preferential tariff rates under the ART. The remaining 24%—or US$27.5 billion—comprised US$17.6 billion worth of products that will be subject to a 15% reciprocal tariff, as well as US$9.9 billion worth of products that have obtained exemptions from that 15% rate.
Premier Cho added that most U.S. industrial goods imported into Taiwan are either raw materials or products targeting distinct market segments. As such, they will generate complementary supply chain effects that, in turn, boost the competitiveness of Taiwan's industries. With respect to U.S. agricultural imports, 85% are products for which Taiwan has low self-sufficiency or no domestic production. Tariff reductions on these imports will thus benefit downstream processors and consumers.
The premier stressed that the government must honestly address the industries that will face significant impacts as a result of the trade agreement. Accordingly, the Ministry of Economic Affairs and Ministry of Labor have launched support measures for the automotive sector, particularly passenger vehicles and automotive parts, allocating special funds of NT$3 billion (US$95.2 million) to provide targeted assistance. A dedicated advisory team will also be established to strengthen export capacity and facilitate upgrading and transformation in the automotive sector. As for the agricultural sector, the Ministry of Agriculture will create a NT$30 billion (US$951.8 million) agricultural security fund to maintain the competitive advantages of Taiwan's agricultural products, bolster industry resilience, assist farmers and expand export opportunities.
Regarding non-tariff trade barriers, Premier Cho said Taiwan and the U.S. reached consensus on a range of issues, including labor rights protection, environmental conservation and sustainable fisheries. He emphasized that public health remains the government's foremost policy priority. Taiwan will align with science-based international standards, he said, while adhering to four principles of "no change": no change to existing bans on sensitive products; no change to country-of-origin labeling requirements; no change to domestic sourcing for school meals; and no change to food safety oversight mechanisms. These four principles will preserve food security and safeguard public health.
Regarding Taiwan-U.S. economic and trade cooperation, the premier noted that, for the nation's long-term development, both sides must work together to deepen economic security cooperation and strengthen high-tech democratic supply chains. To this end, the government has proposed a "Taiwan Model," under which US$250 billion will be invested independently by private enterprises, while government-backed credit guarantees will enable financial institutions to extend up to US$250 billion in corporate financing. The U.S., in turn, will provide corresponding support through infrastructure and regulatory facilitation, delivering mutually beneficial outcomes for Taiwan, the U.S. and industries.
Premier Cho stated that the negotiations fulfilled six key objectives: maintaining the global competitiveness of Taiwan's industries; ensuring food security; protecting public health; enhancing the Taiwan-U.S. economic and trade framework; establishing trusted and secure industrial supply chains; and solidifying the Taiwan-U.S. high-tech strategic partnership. Tariffs on Taiwan's exports to the United States have been reduced from 32% applied in addition to existing MFN rates to a standalone 15% rate exempt from MFN stacking, lowering the effective average tariff rate to 12.33% and successfully preserving the global competitiveness of Taiwan's industries.