Taiwan and the United States have reached an outcome in their reciprocal tariff negotiations after nine months of talks, securing reduced tariffs and preferential treatment for Taiwan under potential future U.S. trade measures, Taiwan’s Cabinet said Tuesday.

Premier Cho Jung-tai (卓榮泰) and Vice Premier Cheng Li-chiun (鄭麗君) said the two sides held six in-person negotiating rounds and multiple virtual meetings, reaching an agreement to lower reciprocal tariffs to 15% without stacking additional duties. The rate matches that granted to major U.S. allies, including the European Union, Japan, and South Korea, and represents the Most-Favored Nation (MFN) tariff offered to countries with large trade surpluses with the United States.

Cheng said Washington also committed to granting Taiwan MFN treatment under potential tariffs imposed under Section 232, which could target semiconductors and related products. Taiwan is the first country to secure advanced preferential terms, including duty-free quotas and discounted tariffs for shipments exceeding quota limits.

Cheng said Taiwan has already secured a framework guaranteeing zero tariffs within quota limits and a preferential rate of 15% outside the quota. She added that if the eventual tariff rate is set lower, Taiwan would automatically receive the lower rate, helping stabilize export competitiveness for Taiwan’s semiconductor and ICT industries.

As part of what officials described as a “Taiwan model,” Taiwanese companies have committed to up to $250 billion in direct investment in the U.S., while the government will provide an additional $250 billion in credit guarantees. Cheng said the credit guarantee program, to be deployed in five phases, is expected to translate into $6.25 billion to $10 billion in actual coverage.

The talks come as the U.S. Supreme Court is expected to rule on the legality of reciprocal tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act, a decision that could affect existing tariff arrangements. 

Premier Cho said any ruling unfavorable to the tariffs could have some impact, adding, “We have already obtained appropriate protections under Section 232, which we believe are the best among countries that have a trade surplus with the United States. Therefore, we believe the impact is somewhat limited, but we will proceed with further consultations or responses after the other side’s ruling is finalized.”

Cheng said negotiations are in the final stage, with the two sides expected to sign an agreement in the coming weeks, including provisions on two-way investment, which would formally conclude the tariff talks.