President Lai Seeks Taiwan–US Tax Relief, Deeper Tech Ties in Meeting With US Lawmakers

The Taiwanese president tied pending tax legislation to investment, AI cooperation, supply chains, and broader economic security.
Published: 6/19/2026, 4:04:20 PM EDT
President Lai Seeks Taiwan–US Tax Relief, Deeper Tech Ties in Meeting With US Lawmakers
President Lai Ching-te meets with a delegation led by United States Congressional Black Caucus Vice Chair Lucy McBath in Taipei on June 18. (ROC Office of the President)

Taiwan’s president has asked U.S. lawmakers to support pending legislation aimed at streamlining trade between the two nations while calling for deeper cooperation in technology, trade, supply chains, and defense.

President Lai Ching-te made the request on June 18 during a meeting in Taipei with Reps. Lucy McBath (D-Ga.) and Valerie Foushee (D-N.C.). McBath, vice chair of the Congressional Black Caucus, led the delegation.

The president said he hoped the U.S. Congress would swiftly complete legislation on avoiding double taxation between Taiwan and the United States in order to improve bilateral trade and investment.

Taiwan became the United States’ fourth-largest goods trading partner last year. U.S. Census Bureau and Bureau of Economic Analysis data show U.S. goods exports to Taiwan totaled $54.7 billion in 2025, while imports from Taiwan totaled $201.4 billion.

Meanwhile, the United States became Taiwan’s largest external trading partner in the first quarter of this year. Taiwan’s Ministry of Finance customs statistics show Taiwan exported $65.6 billion in goods to the United States from January through March and imported $12.7 billion from the United States during the same period.

Tax Relief

Since Washington does not maintain formal diplomatic relations with Taiwan, a regular tax treaty cannot be drawn up. The proposed U.S. legislation provides an alternative treaty-like option, embedding the agreement in U.S. tax code on confirmation that Taiwan has taken the required steps on its end.

The House passed H.R. 33, the U.S.–Taiwan Expedited Double-Tax Relief Act, by a 423–1 vote in January of 2025.

A Senate companion bill, S. 199, was introduced soon after and referred to the same committee. Congress.gov lists the Senate bill’s status as introduced.

In 2024, the Treasury Department said that the two nations would begin negotiating a comprehensive tax agreement under the auspices of the American Institute in Taiwan—America’s de-facto U.S. embassy there—and the Taipei Economic and Cultural Representative Office, which represents Taiwan in the United States. The Treasury said such an agreement would support CHIPS and Science Act goals by strengthening semiconductor supply-chain resilience and encouraging investment in U.S. semiconductor manufacturing.

Technology, Trade, Defense

Lai told the lawmakers that Taiwan would continue to deepen industrial cooperation with U.S. states.

He described McBath's home state of Georgia and Foushee's state of North Carolina as centers of emerging industries and technology research, which match Taiwan’s push to upgrade its AI and high-tech industries.

Lai also noted Taiwan and the United States signed a letter of intent last month to establish a Taiwan–U.S. Semiconductor Education Alliance.

Foreign Minister Lin Chia-lung, who hosted the delegation at Taiwan’s Foreign Ministry on June 17, said Taiwan seeks to deepen cooperation with the United States in economic security, AI, digital infrastructure, and resilient supply chains.

Lai also linked the economic discussion to Taiwan’s security environment.

McBath said the delegation’s visit reaffirmed long-standing congressional support for Taiwan and provided a chance to exchange views on the two countries’ shared economic future. She also said a secure and prosperous Taiwan contributes to regional stability and to the credibility of U.S. commitments globally.

Pending Senate Action

U.S. business groups have also pressed Congress to act on the tax issue. In a November 2025 letter, the US–Taiwan Business Council said it joined trade associations urging Congress to pass legislation ending double taxation between the United States and Taiwan.

The council said Taiwan is the largest U.S. trading partner without a tax agreement with the United States.

Congress.gov lists H.R. 33 as passed by the House and referred to the Senate Finance Committee. It lists S. 199 as introduced in the Senate and referred to the same committee.