The U.S. and Taiwan share deep and expanding financial and trade ties, advancing American interests and creating economic opportunities and jobs across the United States. In 2024, Taiwan ranked as the U.S.’s seventh-largest trading partner, while the U.S. remained Taiwan’s second-largest trading partner.

Despite this strong economic relationship, Taiwan remains the only top-ten U.S. trading partner without a bilateral tax agreement with the United States. The current double taxation scheme imposes financial burdens and higher tax rates on American and Taiwanese workers and businesses operating across our borders, discouraging investment and trade between the two countries.

Relieving double taxation and providing treaty-like tax benefits will support American and Taiwanese workers and businesses operating in each other’s countries while strengthening U.S.-Taiwan trade and economic ties. Eliminating double-tax disincentives will also encourage greater Taiwanese investment in the U.S., which is especially critical as we revitalize semiconductor manufacturing in the United States.

As a key U.S. economic and strategic partner that shares our democratic values, Taiwan plays a crucial role in our efforts to secure supply chains, reduce reliance on adversarial sources, and maintain regional stability — all of which are vital to the American economy and national security.