Vice Premier to Leave for U.S., Sign Tariff Agreement: Sources

Why It Matters

The tariff reduction and massive investment pledge deepen Taiwan’s economic integration with the United States, bolstering its high‑tech sector while reshaping trade balances. Legislative scrutiny and transparency concerns highlight the political stakes of the pact.

Key Takeaways

• U.S. cuts Taiwan tariffs to 15% from 20%
• Taiwan pledges $250B semiconductor investment in U.S.
• $250B Taiwanese credit guarantees support U.S. expansion
• ART includes U.S. vehicle and agricultural market access
• Opposition demands full transparency before legislative approval

Pulse Analysis

The upcoming Agreement on Reciprocal Trade marks a pivotal shift in Taiwan‑U.S. economic relations, building on a preliminary consensus reached in Washington earlier this year. By aligning Taiwan’s export duties with those enjoyed by Japan and South Korea, the United States aims to secure a more level playing field for its manufacturers while encouraging Taiwan to deepen its supply‑chain ties. This move reflects broader geopolitical calculations, as both economies seek to counterbalance rising regional trade tensions and reinforce a shared commitment to high‑technology collaboration.

At the heart of the ART lies a $250 billion investment pledge from Taiwanese semiconductor and technology firms, matched by an equivalent pool of credit guarantees from Taiwan’s government. These funds are earmarked to expand production capacity, research facilities, and workforce training in the United States, potentially accelerating the localization of critical chip manufacturing. In return, Taiwanese exporters will benefit from reduced duties, while U.S. industries such as automotive and agriculture gain improved market access in Taiwan, promising incremental revenue streams and diversified supply sources for both sides.

Politically, the agreement must clear Taiwan’s Legislative Yuan, where the opposition Kuomintang is pressing for full disclosure of the pact’s impact on workers, farmers, and SMEs. The demand for transparency underscores domestic concerns about job displacement and food security, even as the administration emphasizes four core principles: national interest, industrial growth, public health, and food security. The legislative debate will likely set a precedent for how Taiwan balances ambitious trade ambitions with democratic accountability, shaping the future trajectory of its international economic strategy.

Vice Premier to leave for U.S., sign tariff agreement: Sources

02/10/2026 06:58 PM · Vice Premier Cheng Li‑chiun. CNA file photo

Taipei, Feb. 10 (CNA) – Vice Premier Cheng Li‑chiun (鄭麗君) is scheduled to lead a delegation to the United States on Tuesday evening where she will sign the Agreement on Reciprocal Trade (ART) later this week, according to the Executive Yuan.

The visit follows a preliminary consensus reached in Washington in mid‑January. Under that arrangement, the U.S. agreed to reduce tariffs on Taiwanese goods from 20 percent to 15 percent, matching the rates applied to major competitors like Japan and South Korea.

In exchange, Taiwanese semiconductor and technology firms have committed to investing at least US$250 billion in the United States.

The preliminary agreement also included US$250 billion in credit guarantees by the Taiwanese government to help domestic companies expand their footprint in the U.S. market.

While full technical details remain undisclosed, the ART is widely expected to include provisions to reduce tariffs on U.S. goods imported into Taiwan, covering U.S.-made vehicles, and to open the local market to specific American agricultural products.

As part of ongoing outreach, Minister of Economic Affairs Kung Ming‑hsin (龔明鑫) met with representatives from nine major domestic automakers on Tuesday afternoon, according to sources.

In addition, Minister of Labor Hung Sun‑han (洪申翰) is set to meet with automotive‑industry labor unions on Wednesday to discuss workforce impacts, sources said.

Cabinet spokesperson Michelle Lee (李慧芝) emphasized that the government will continue to adhere to four core principles: upholding national interests, safeguarding industrial growth, protecting public health, and ensuring food security.

Once the ART is finalized, the administration will submit the agreement to the Legislative Yuan for review, accompanied by a legally required impact‑assessment report, Lee said.

The ART can only come into force if it is passed by the Legislature.

The opposition Kuomintang (KMT) on Tuesday demanded that the government provide a full public report on the scope of the ART to both the Legislature and the public before signing any formal pact.

Those expected to be most affected — including workers, farmers, and small and medium‑sized enterprises — remain “excluded from key information,” KMT caucus secretary‑general Lin Pei‑hsiang (林沛祥) said, adding that the government has the responsibility to ensure full transparency of the agreement’s potential impacts.