The United States and Taiwan have finalized a trade agreement to reduce tariffs on Taiwanese products from 20% to 15%.

Washington and Taipei have signed a trade agreement that reduces tariffs on Taiwanese goods from 20% to a maximum of 15%.

This agreement aligns tariffs for Taiwanese products with those for European and Japanese goods. The agreement includes measures from Taiwan to combat unfair trade practices and improve supply chains, especially in the high-tech sector, according to the Office of the United States Trade Representative (USTR). Taiwan commits to eliminate or reduce 99% of tariff barriers for American products and to accept American standards in sectors such as vehicles and pharmaceuticals. Additionally, Taiwan will order American products worth over 69 billion dollars.

The agreement comes in a context where tariffs have been used by the Trump administration as trade and diplomatic tools, but their future is uncertain as the U.S. Supreme Court will soon decide on their legality.