The US and Taiwan signed the US-Taiwan Agreement on Reciprocal Trade (ART). The press release included a fact sheet with links to the agreement text and tariff schedule.
Impact on U.S. Imports:
Imports into the United States from Taiwan will be subject to a flat 15% inclusive of MFN or the MFN rate if the MFN is greater than 15%. This is a reduction from the previous IEEPA reciprocal rate of 20%.
Since PMMI relevant tariff lines of 8422 and 8438 have an MFN of 0%, imports of these items will be subject to the maximum reciprocal tariff rate of 15%. Taiwan is 7th largest source market for food processing and packaging machinery with $110.6 M imported from Taiwan over the last 12 months of data available (November 2024 – October 2025). The reduction of Taiwan’s reciprocal tariff rate from 20% to 15% reduces annual tariff exposure by $5.5 M for imports of food processing and packaging machinery.
While the US-Taiwan ART text includes lists of exemptions from reciprocal tariffs, food processing and packaging machinery of 8438 and 8422 are not included.
U.S Export Opportunities:
Under the Taiwan commitments, tariffs for U.S. food processing and packaging machinery of 8438 and 8422 will be eliminated upon entry into force (EIF). Current MFN tariffs for these products range between 2.5% and 4%, and tariff cost savings by gaining duty-free treatment into Taiwan is estimated at $310.7 K. Taiwan’s concessions in the agreement with estimated cost savings are outlined in the table below.
Taiwan’s Concessions to the United States under ART for Food Processing and Packaging Machinery
*USITC U.S. export data from November 2024 – October 2025 used as a proxy for estimated tariff savings, which is presented as an annual estimate.
