What You Need to Know
Editor’s Note (August 2026): This article has been updated to reflect recent tariff developments and current trade policy considerations for U.S. exporters exporting to Taiwan.
A leading democracy and a technological powerhouse, Taiwan is a key United States partner in the Indo-Pacific. While the U.S. does not have official diplomatic relations with Taiwan, there is a robust unofficial relationship based on similar values, deep commercial and economic links, and strong people-to-people ties.
In this article, I’ll look at the history of U.S. trade with Taiwan; the process of exporting to Taiwan, including documentation and compliance requirements; and the benefits and considerations for U.S. companies looking to break into the Taiwanese marketplace.
History, Trade and Exporting to Taiwan
Taiwanese democratization expanded rapidly in the 1980s, leading to the then-illegal founding of the Democratic Progressive Party (DPP), Taiwan’s first opposition party, in 1986 and the lifting of martial law in 1987. Taiwan held legislative elections in 1992, its first direct presidential election in 1996, and then underwent its first peaceful transfer of power with the KMT loss to the DPP in the 2000 presidential elections. Two additional democratic transfers of power occurred in 2008 and 2016. (CIA Factbook)
Throughout this time, Taiwan has prospered and turned into one of East Asia’s economic “tigers,” becoming a major investor in mainland China after 2000 as cross-Strait ties matured.
The U.S. has a longstanding one China policy—guided by the Taiwan Relations Act, the three U.S.-China Joint Communiques, and the Six Assurances—that opposes any unilateral changes to the status quo from either Taiwan or China. The U.S. government has an abiding interest in peace and stability across the Taiwan Strait; it does not support Taiwan independence, and the expectation is that any cross-Strait differences be resolved by peaceful means. Consistent with the Taiwan Relations Act, the United States makes available defense articles and services as necessary to enable Taiwan to maintain a sufficient self-defense capability—and maintains its capacity to resist any resort to force or other forms of coercion that would jeopardize the security, or the social or economic system, of Taiwan.
The United States and Taiwan maintain a strong and rapidly growing trade relationship. According to the Census Bureau, U.S. goods trade with Taiwan totaled about $255 billion in 2025, including $54.7 billion in U.S. exports to Taiwan and $201.4 billion in imports from Taiwan. The U.S. trade deficit grew sharply in 2025 due to increasing imports of semiconductors and electronics; this imbalance is one reason the Trump administration introduced tariff negotiations with Taiwan.
Recent Tariffs and U.S.–Taiwan Trade Policy
U.S. tariff treatment for Taiwanese goods changed several times between 2025 and mid-2026. The United States initially announced a 32% reciprocal tariff in April 2025, temporarily replaced it with a 10% rate and later established a 20% rate for many Taiwan-origin goods.
In February 2026, the United States and Taiwan signed a reciprocal trade agreement that proposed an all-in tariff rate of 15% for most Taiwanese goods. Taiwan also committed to eliminate or reduce 99% of its tariff barriers and facilitate approximately $84.8 billion in purchases of U.S. energy, aircraft and industrial equipment. However, the agreement was not immediately implemented, and subsequent court decisions and policy actions changed the tariff framework again.
By July 2026, a new Section 301 action generally capped the combined Most-Favored Nation and Section 301 tariff at 10% for covered Taiwanese products, with numerous product exclusions and separate duties potentially still applying.
Because tariff policies remain fluid and rates depend on a product’s classification, origin and applicable trade measures, exporters and importers should confirm the latest requirements before pricing a transaction, calculating landed costs or shipping goods.
Exporting to Taiwan: The Challenges
Taiwanese policy poses relatively few formal barriers to U.S. trade or investment. According to the U.S. International Trade Administration (ITA), U.S. exporters may experience the following challenges:
- Taiwan is a price-sensitive market. Foreign goods must conform to certain local standards and labeling regulations. Qualified local agents and distributors are able to assist U.S. exporters with obtaining the necessary certifications and permits for importation.
- Intellectual property rights. U.S. exporters report both positive developments and ongoing challenges in Taiwan’s protection and enforcement of intellectual property rights. Taiwan has recently bolstered trade secrets protection and enforcement, but considerable challenges remain in combating copyright-related infringement both online and with printed educational materials.
Exporting to Taiwan: The Opportunities
In most situations, the potential rewards of exporting to Taiwan outweigh any challenges exporters may face. Exporters should identify and cultivate business opportunities while building a strategy to minimize the risks. Specifically, Taiwan has become one of the most strategically important technology economies in the world, particularly due to its leadership in semiconductor manufacturing and electronics exports.
Leading sectors in Taiwan for U.S. exports and investments include:
- Semiconductors and electronics manufacturing
- Aerospace and aviation equipment
- Energy products (including LNG)
- Advanced manufacturing equipment
- Agricultural products.
For agriculture-related products, the best prospects for U.S. exports include soybeans, beef and beef products, corn, wheat, and fresh fruit.
Export Assistance
If you’re interested in exploring export opportunities in this region, there are plenty of resources you can lean on for help, including U.S. Commercial Service offices, trade missions, and chambers of commerce.
U.S. Commercial Service Offices
One of the first places to consider are your local and in-country U.S. Commercial Service offices. The American Institute in Taiwan (AIT) is a private, non-profit corporation established to carry out relations between the people of the United States and the people of Taiwan. They offer U.S. Commercial Service’s services and provide a variety of resources and support to assist U.S. companies entering the Taiwan market.
Commercial Service in-country offices effectively serve as your business partners in Taiwan—boots on the ground in the country. Commercial service offices also include representation by an agent, distributors or partners who can provide essential local knowledge and contacts that are crucial to your success.
You can learn more about in-country offices in our article, Tapping into the U.S. Commercial Service’s In-Country Offices.
District Export Councils (DECs)
DECs across the country help exporters by supporting trade and services that strengthen individual companies, stimulate U.S. economic growth, and create jobs. DEC members also serve as mentors to new exporters and provide advice to smaller companies.
Sponsored by state and local trade offices as well as commercial service offices, trade missions offer introductions to important contacts and networking opportunities. Check into them.
International Trade Administration
The ITA is an excellent resource to help you combat trade problems. ITA staff members are resident experts in advocating for U.S. businesses of all sizes. They customize their services to help solve your trade dilemmas as efficiently as possible. Plus, the ITA makes it easy to report a problem, allowing you to submit your report online.
Chambers of Commerce
Chambers of Commerce may also be a resource when exporting to Taiwan. You can learn more about various chambers and how they can help smooth the way for your export activities in our article, The Chamber of Commerce Role in Exporting.
Export Document Requirements for Taiwan
Accurate export documentation and attention to procedures are as critical in exporting to Taiwan as they are for exporting to any other country. An import license is not needed to import the majority of industrial goods into Taiwan, although some industrial goods do require licenses.
Export Compliance Issues When Exporting to Taiwan
It’s important to understand the regulations covering exports to Taiwan, especially export controls.
Product Classification for Export Controls
The first step in ensuring export compliance is determining who has jurisdiction over your goods: the U.S. Department of Commerce under the Export Administration Regulations (EAR) or the State Department’s International Traffic in Arms Regulations (ITAR).
If your goods fall under the jurisdiction of the Commerce Department—which most products do—you must determine if your export requires authorization from the Bureau of Industry and Security (BIS, part of the Commerce Department). To make that determination, first answer the following questions:
- What is the Export Control Classification Number (ECCN) of the item?
- Where is it going?
- Who is the end user?
- What is the end use?
There are three ways to classify your products for export controls: You can self-classify your products, submit a SNAP-R request for a ruling, or rely on the product vendor to provide the information. If you’re self-classifying, Shipping Solutions Product Classification Software makes the process easier than manually searching through codes and regulations. You can give it a try for free here.
By classifying your product correctly, you’ll be protecting yourself from potential fines, penalties and even jail time.
Export License Determination
Next, companies must use the ECCN codes and reasons for control described above to determine whether or not there are any restrictions for exporting their products to specific countries. Once they know why their products are controlled, exporters should refer to the Commerce Country Chart in the EAR to determine if a license is required.
Although a relatively small percentage of all U.S. exports and reexports require a BIS license, virtually all exports and many reexports to embargoed destinations and countries designated as supporting terrorist activities require a license. Countries fitting that bill are Cuba, Iran, North Korea and Syria.
Part 746 of the EAR describes embargoed destinations and refers to certain additional controls imposed by the Office of Foreign Assets Control (OFAC) of the Treasury Department.
Shipping Solutions Professional export documentation and compliance software includes an Export Compliance Module that uses the ECCN code for your product(s) and the destination country to tell you if an export license is required. If indicated, you must apply to BIS for an export license through the online Simplified Network Application Process Redesign (SNAP-R) before you can export your products.
There are export license exceptions, like low-value or temporary exports, that allow you to export or reexport, under stated conditions, items subject to the Export Administration Regulations (EAR) that would otherwise require a license. These license exceptions cover items that fall under the jurisdiction of the Department of Commerce, not items controlled by the State Department or some other agency.
Deemed Exports
Surprise! You may be an exporter without even knowing it! Deemed exports, or the disclosure of information or services rather than an actual product, is an important issue to pay attention to when exporting. A deemed export occurs when technology or source code (except encryption and object source code, which is separately addressed in the EAR, is released to a foreign national within the United States.
Sharing technology, reviewing blueprints, conducting tours of facilities, and other information disclosures are considered potential exports under the deemed export rule and should be handled accordingly.
Restricted Party Screenings
Restricted party lists (also called denied party lists) are lists of organizations, companies or individuals that various U.S. agencies—and other foreign governments—have identified as parties that one can’t do business with. There are several reasons why a person or company may be added to a restricted party list. For example, they may be a terrorist organization or affiliated with such an organization; they may have a history of corrupt business practices; or they may otherwise pose a threat to national security.
Restricted party screening (or denied party screening) refers to the process in which a company checks a potential customer or business partner against one or more of the restricted party lists to ensure their potential partners are legally accepted. The primary restricted party lists in the United States are published by the Department of Commerce, Department of State, and Department of Treasury. However, several other agencies produce lists as well. These agencies recommend that companies perform restricted party screening periodically and repeatedly throughout the movement of goods in the supply chain.
When exporting to Taiwan, it’s imperative you check every single restricted party list every time you export because:
- Fines for export violations can reach up to $1 million per violation in criminal cases.
- Administrative cases can result in a penalty amounting to $250,000 or twice the value of the transaction, whichever is greater.
- Criminal violators may be sentenced to prison for up to 20 years, and administrative penalties may include denial of export privileges.
Shipping Solutions Restricted Party Screening Software makes it fast and easy to check hundreds of lists at once, and it provides detailed information about potential matches, so you can make an informed decision about what to do next. Give it a try for free.
Exporting to Taiwan: Key Takeaways
Taiwan remains one of the most important export markets for U.S. companies in Asia, particularly in technology, manufacturing equipment, and energy. However, evolving tariff policies and trade negotiations mean exporters should stay informed about regulatory changes and market dynamics when developing export strategies.
Exporters also need reliable processes for documentation and compliance. That includes preparing accurate export forms, understanding applicable regulations and screening customers, suppliers and other trade partners against restricted party lists.
That’s where Shipping Solutions can help.
With Shipping Solutions export documentation and compliance software, exporters can quickly create accurate export documents, run restricted party screenings against hundreds of lists at once, and reduce the risk of costly compliance mistakes.
For companies that want additional support, GLOBAL GATEWAY by Shipping Solutions brings everything together in one place. This all-in-one export management service combines expert compliance support, integrated export documentation and discounted international shipping in a single streamlined solution.
Whether you’re just beginning to export or already shipping worldwide, Global Gateway works like an extension of your logistics team—without the added overhead.
You don’t need to master every detail of international trade to succeed globally. You just need the right partner.
Schedule a free, no-obligation consultation to learn how we can support your exports.
This is one in a series of articles exploring exporting to specific countries across the globe—we previously featured ASEAN countries, Australia, Brazil, Canada, China, the EU, France, Germany, India, Israel, Japan, Mexico, the Netherlands, Russia, Singapore, South Korea, Taiwan and the United Kingdom.
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