Trump Signs Appropriations Act and Inks Taiwan Trade Deal

President Donald Trump signed the Consolidated Appropriations Act, 2026, on February 3, 2026, ending a four-day partial federal government shutdown. The 1.2 trillion dollar omnibus bill allocates over 1.4 billion dollars to security cooperation with Taiwan, including 1 billion dollars for the Taiwan Security Cooperation Initiative to enhance deterrence and 300 million dollars via the Foreign Military Financing program. The act also prohibits the use of funds for maps that inaccurately depict Taiwan's territory.

Simultaneously, the United States and Taiwan moved toward a reciprocal trade agreement expected for approval by the Legislative Yuan in mid-February 2026. Under the terms, the United States will reduce tariffs on Taiwanese goods from 20 percent to 15 percent and grant semiconductors most-favored-nation treatment under Section 232 of the US Trade Expansion Act. In return, Taiwanese firms in the semiconductor, AI, and energy sectors plan to invest 250 billion dollars in the US, supported by an equivalent amount in credit guarantees from the Taiwanese government.

American Institute in Taiwan Director Raymond Greene stated that the collaboration supports the goal of reindustrializing the United States by combining Taiwan's mechanical expertise with US AI software. Deputy Legislative Speaker Johnny Chiang noted that Taiwan's focus on physical AI for manufacturing would complement the American emphasis on AI software.