The President Donald Trump administration has finalized a sweeping long-term trade agreement between the United States and Taiwan covering tens of billions of dollars in energy, aviation, and industrial purchases.
According to an official Office of U.S. Trade Representative fact sheet, the deal, concluded under the framework of the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office (TECRO), is designed to expand bilateral trade, strengthen supply chains, and deepen what both sides describe as a high-tech strategic partnership.
In a statement on Thursday, February 13, the office said Taiwan plans to purchase $44.4 billion worth of U.S. liquefied natural gas and crude oil under the new agreement on reciprocal trade.
The far East nation is also set to purchase $15.2 billion in civil aircraft and engines, and $25.2 billion in power grid systems, generators, steelmaking machinery and marine equipment, through 2029.
Since returning to office, President Trump has prioritized reducing trade deficits, reshoring manufacturing, and securing long-term supply chain partnerships with strategic allies.
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The agreement with Taiwan aligns with his long-running push for what his administration calls “balanced and reciprocal trade.”
U.S. officials said the agreement would significantly expand market access for American exports while reinforcing economic and national security cooperation between Washington and Taipei.
“President Trump continues to help U.S. farmers, ranchers, fishermen, small businesses, and manufacturers to increase U.S. exports to and expand business opportunities with our trading partners” the fact sheet stated.
“Today’s announcement provides a tangible path forward with Taiwan that underscores the President’s dedication to bringing balanced, reciprocal trade with an important trading partner.”
Taiwan to purchase United States aircraft and engines
Taiwan has committed to buy $15.2 billion worth of U.S. civil aircraft and engines. The purchase is expected to support U.S. manufacturing, aviation supply chains, and high-value industrial exports.
While specific aircraft models were not detailed, such large-scale aviation agreements typically involve long-term fleet modernization and expansion programs.
Taiwan — heavily dependent on imported energy — will secure long-term supplies of U.S. liquefied natural gas and crude oil worth $44.4 billion.
The agreement also includes $25.2 billion in purchases of power grid equipment, generators, storage systems, marine and industrial machinery, and steelmaking technology, aimed at strengthening Taiwan’s infrastructure and industrial resilience.
At the same time, Taiwan has committed to eliminate or reduce 99 percent of tariff barriers on U.S. industrial and agricultural exports.
The country will be opening its market to American autos, machinery, chemicals, electrical products, metals, and a wide range of agricultural goods including beef, dairy, wheat, pork, and seafood.
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Taiwan also agreed to remove longstanding non-tariff barriers affecting U.S. vehicles, pharmaceuticals, and medical devices, including accepting U.S. regulatory approvals without additional requirements.
Further, the deal strengthens cooperation in high-tech sectors such as semiconductors, electronics manufacturing, and energy — areas considered strategically critical to both economies.
“The two sides also take note of the Memorandum of Understanding signed by AIT and TECRO on January 15, 2026, in which the Taiwan side promises to work with the United States to establish industrial parks and industry clusters that will help the United States substantially increase its domestic production capacity in key high-tech sectors.
The MOU contemplates that Taiwan companies will significantly increase their investments in the semiconductors supply chain, electronics manufacturing services (including AI applications), energy, and other sectors in the United States, with financial support from the Taiwan side.”
Trade volume
Two-way trade between the United States and Taiwan exceeded $185 billion in 2024, making Taiwan one of Washington’s most important economic partners in Asia.
Before the agreement enters into force, Taiwan must complete domestic procedures, including legislative review.
The United States has also committed to adjusting tariff treatment for Taiwanese goods under reciprocal trade rules tied to earlier executive orders.
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