Taiwan sees overall limited impact from US latest tariff moves

Taiwan sees overall limited impact from US latest tariff moves

Taiwan Sees Limited Impact from U.S. Tariff Adjustments Amid Trade Agreement Progress

Taiwan's government has indicated that the U.S. Supreme Court's recent ruling against President Donald Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose global tariffs will have a "limited impact" on its economy. The court's 6-3 decision, issued on February 15, invalidated Trump's authority to levy tariffs under IEEPA, but Taiwan's Executive Yuan emphasized that existing trade negotiations, including the recently finalized Agreement on Reciprocal Trade (ART), have already mitigated potential disruptions.

The ART, signed on February 12, reduces U.S. tariffs on Taiwanese goods from 20% to 15% under IEEPA and addresses broader trade barriers. The deal also phases out 99% of Taiwan's tariffs on U.S. products over three years, with immediate cuts on items like passenger vehicles (from 17.5% to 0%) and agricultural products such as fresh oranges and duck meat.

Experts note that Taiwan's core exports—semiconductors and electronics— were already exempt from IEEPA tariffs, further limiting the ruling's economic fallout.

The agreement includes a $500 billion investment component, with Taiwan committing to expand U.S. LNG imports and boost purchases of power equipment, aircraft, and semiconductors. Additionally, the U.S. has agreed to a quota-based system for future semiconductor tariffs tied to Taiwanese investments in American manufacturing.

While the ART strengthens economic ties, challenges remain. Taiwan's legislature must approve the deal, a process complicated by opposition concerns over agricultural competition and food safety. Political hurdles could delay implementation, though analysts caution that Trump may impose alternative measures if progress stalls.

Overall, Taiwan's strategic alignment with U.S. trade policies and negotiated tariff reductions position it to weather potential shifts in U.S. tariff strategies, ensuring stability for its export-driven industries.

(https://focustaiwan.tw/politics/202602210006): Executive Yuan statement, February 21, 2026
(https://globaltaiwan.org/2026/02/whats-in-the-new-us-taiwan-agreement-on-reciprocal-trade/): Global Taiwan Institute analysis, February 12, 2026
(https://globaltaiwan.org/2026/02/whats-in-the-new-us-taiwan-agreement-on-reciprocal-trade/): Reuters, February 12, 2026
(https://www.taipeitimes.com/News/taiwan/archives/2026/02/22/2003852688): Taipei Times, February 22, 2026