Friday, February 13, 2026

February 2026: TRUMP PRESIDENCY Trump’s Taiwan Pact Reshapes Supply Chains and Global Power

Trump’s Taiwan Pact Reshapes Supply Chains and Global Power
"The Trump administration finalized a sweeping trade agreement with Taiwan that cuts tariffs, boosts American exports, and pours hundreds of billions into U.S. industry.
Taiwan agreed to eliminate or sharply reduce tariffs on nearly all
American goods, as duties on U.S. beef, dairy, and corn were reduced immediately to 0%. Pork belly tariffs fell from 40% to 10%, and ham fell from 32% to 10%. Taiwan also removed non-tariff barriers on motor vehicles, medical devices, and pharmaceuticals, accepting U.S. safety standards in those sectors.

The U.S. dropped tariffs on Taiwanese imports to 15% from 20%, a shift that aligns Taiwan with key competitors like South Korea and Japan. Semiconductors and advanced electronics stand at the center of that adjustment.
Taiwan is committed to buying nearly $85 billion in U.S. goods between 2026 and 2029, including $44.4 billion in liquefied natural gas and crude oil, $15.2 billion in civil aircraft and engines, and $25.2 billion in power grid equipment and generators. Rounding out the list are marine and steelmaking equipment.
Taiwanese companies pledged $250 billion in U.S. production across semiconductors, energy, AI, and advanced electronics.
Chinese President Xi Jinping called Taiwan the most important issue in China-U.S. relations during a recent call with President Donald Trump, pressing for prudent handling of arms sales and warning against deeper ties.
Taiwan President Lai Ching-te, however, described the pact as pivotal for the island's economic future, urging closer trade alignment with democracies such as the United States, Japan, and European partners over a deeper reliance on China.
Over 70% of global advanced chip production depends on Taiwan, as shifting capital and facilities toward American soil reduces exposure to geopolitical shocks. Industrial clusters anchored in American states simultaneously strengthen national security and economic leverage." 
PJMedia

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