Overview

Taiwan–United States trade relations are a significant aspect of East Asian economic diplomacy and international trade. The partnership is characterized by a robust exchange of goods, services, and investment. The United States is one of Taiwan's largest trading partners, while Taiwan is a substantial trading partner for the United States within the Asia-Pacific region.

Historical Background

Formal economic relations between Taiwan and the United States developed significantly after the end of the Chinese Civil War, with U.S. support for Taiwan’s industrialization. Despite the lack of formal diplomatic recognition since 1979, both parties have maintained strong unofficial relations, primarily governed through the Taiwan Relations Act and the American Institute in Taiwan (AIT).

Key Areas of Trade

The key traded goods between the two economies include:

• Semiconductors and electronics
• Machinery
• Chemicals
• Agricultural products

Taiwan is a major supplier of advanced semiconductor chips to the United States, making it an important node in global technology supply chains.

Bilateral Dialogue and Agreements

Trade discussions are ongoing and regularly updated through formal dialogues such as the Trade and Investment Framework Agreement (TIFA) established in 1994. More recently, the U.S.–Taiwan Initiative on 21st-Century Trade, launched in 2022, seeks to deepen economic ties and address issues such as customs procedures, regulatory practices, and trade facilitation.

Tariffs and Trade Negotiations

One recurrent issue in trade relations involves tariffs and market access for goods such as U.S. pork and beef exports to Taiwan, and access for Taiwan’s manufactured products in the U.S. market. Bilateral consultations and negotiation rounds are regularly conducted to address these issues and to promote trade liberalization and economic cooperation.

Significance

The economic partnership is strategically significant, contributing to regional stability and the global supply chain for high-technology products. Both the United States and Taiwan continue to pursue enhancement of their economic partnership through formal dialogues and negotiations.