Taiwan-U.S. tariff deal to boost economy: Officials

Taipei, Jan. 26 (CNA) The recently concluded tariff reduction agreement between the United States and Taiwan is expected to enhance industrial competitiveness, bolster investor confidence and have a positive impact on Taiwan's economy, government officials said Monday.

Under the Taiwan-U.S. tariff agreement finalized and announced on Jan. 15 (U.S. time), the United States will cut tariffs on Taiwanese goods from 20 percent to 15 percent, without stacking them on top of existing most-favored-nation rates. Taiwanese semiconductors and related products will also receive the most favorable tariff treatment.

Speaking at a meeting of the Legislature's Finance Committee, Financial Supervisory Commission Chairman Peng Jin-long (彭金隆) said Taiwan's benchmark Taiex index rose 2.64 percent by Jan. 20 following the announcement.

Meanwhile, average daily turnover increased 6.67 percent, while foreign institutional investors posted net purchases of NT$7.93 billion (US$252 million), he added.

Peng said the 15 percent reciprocal tariff framework, aligned with arrangements enjoyed by Japan, South Korea and the European Union, places Taiwanese manufacturers on a fair competitive footing with major regional peers and may even give them an edge over rivals in Vietnam and China.

He noted that the combined cumulative revenue of Taiwan's listed and over-the-counter companies totaled about NT$49.57 trillion as of the end of December 2025, up 13.78 percent from a year earlier and the highest on record for the period.

Deputy Minister of Economic Affairs Ho Chin-tsang (何晉滄) said the tariff outcome has sharply reduced potential negative impacts on exports, output and employment.

Ministry-commissioned assessments show that exports to the U.S., previously projected to decline by up to 7.5 percent under a high-tariff scenario, are now expected to grow slightly, by 0.04 percent to 0.08 percent, he added.

Industrial output and GDP are also projected to shift from contraction to marginal growth, while industrial employment, once expected to fall by 36,000 jobs, is now estimated to rise by between 206 and 329 positions, Ho said.

Finance Minister Chuang Tsui-yun (莊翠雲) said Taiwan and the United States are conducting a final review of the draft reciprocal trade agreement, which will be submitted to the Legislature once signed.