On February 13th, 2026, Taiwan's Executive Yuan issued a press release confirming the signing of the Taiwan-U.S. Reciprocal Trade Agreement, which establishes a 15% reciprocal tariff with no overlap. Key provisions concerning the automotive sector include zero tariffs on U.S.-made passenger cars, the removal of import limits on U.S.-specification vehicles, changes to Taiwan's vehicle inspection system and measures relating to the domestic automotive industry.

The Ministry of Transportation and Communications (MOTC) subsequently announced its 2027 Ministry of Transportation Unit Budget, which includes plans relating to the importation of U.S.-specification vehicles into Taiwan. The budget includes NTD 400 million (US$12.7 million) for additional vehicle inspection and testing capacity.

According to the MOTC, following the signing of the Reciprocal Trade Agreement, Taiwan has committed to removing import limits on U.S.-specification passenger cars and aligning its requirements with U.S. standards.

Under the planned arrangements, U.S.-made vehicles manufactured in the United States that comply with the U.S. Federal Motor Vehicle Safety Standards (FMVSS) and applicable US emissions standards will be accepted for import into Taiwan without additional compliance assessment requirements. Taiwan will, however, establish a post-market sampling, supervision and management mechanism to monitor the safety compliance of these vehicles.

NTD 400 million earmarked for testing infrastructure

The MOTC said an assessment found that Taiwan's existing domestic market sampling and testing capacity was insufficient to fully implement FMVSS requirements. Additional domestic testing capabilities will therefore be established for safety compliance supervision of U.S.-specification vehicles.

The ministry's 2027 budget includes NTD 400 million for establishing testing capabilities for vehicles complying with U.S. standards. Of this amount, NTD 114 million will be allocated to building construction and equipment, covering preliminary work such as laboratory site planning, environmental impact assessments, electricity-demand assessments, fire-safety requirements and the acquisition of relevant administrative permits.

A further NTD 26 million will be allocated to public buildings and facilities, covering geological and site improvements, foundation works and other construction-related requirements. The remaining NTD 260 million will be used for machinery and equipment, including preparations for specifying and procuring laboratory testing equipment.

Together, these allocations bring the total planned investment in building construction and equipment, public construction and facilities, and machinery and equipment to NTD 400 million.

Supporting safety supervision and EV testing

The MOTC said the new safety compliance supervision and testing capabilities will provide the infrastructure required for post-market sampling and monitoring of U.S.-made vehicles.

The facilities will also support defect investigations, recall-related corrective measures and other regulatory operations. According to the ministry, the additional testing capabilities will be used for safety compliance checks on U.S.-made vehicles, as well as high-voltage safety testing and technical interpretation following electric vehicle collisions.

The government said these measures are intended to support regulatory supervision and address consumer rights and road safety.

Automakers prepare for wider access to U.S.-made vehicles

The prospect of zero tariffs on U.S.-made cars has prompted several domestic automakers and distributors to consider expanding their US-sourced model line-ups.

Ford Lio Ho has announced plans to introduce the Explorer and Bronco to Taiwan. Yulon Nissan is evaluating the introduction of U.S.-made Nissan and Infiniti models, while Nanyang Industrial, Hyundai's general agent in Taiwan, has also said it is considering the future introduction of a redesigned U.S.-market Elantra.

With the MOTC allocating funds to establish additional testing capabilities, Taiwan's regulatory framework and procedures for importing U.S.-made vehicles are expected to become clearer.

U-CAR will continue to monitor developments concerning the importation of U.S.-made vehicles into Taiwan.