TAIPEI (Taiwan News) — A promise to buy nearly NT$39 billion (US$1.3 billion) of wheat from the US over the next three years has seen wheat futures go up, according to reports.

A Taiwan delegation from the Taiwan Flour Millers Association committed to buy about 3.3 million tonnes of wheat during a ceremony at the US Capitol on Wednesday, per Capital Press. The US supplies more than one-fifth of Taiwan’s agricultural imports, and the deal is expected to generate goodwill after significant tariff increases on exports.

Wheat futures rose about 0.5% after Taiwan signed the letter of intent to buy US wheat from 2026 to 2029. The agreement helped wheat futures rebound from a brief slump to their highest levels since late July.

US Wheat Associates Chair Jim Pellman was quoted as saying: “Taiwan and the US enjoy a close and long-standing partnership built on a shared dedication to wheat quality and reliability.”

“US agricultural exports, particularly US wheat, enjoy an excellent reputation in Taiwan. In turn, we as American farmers place great value on the relationship with our customers in Taiwan.”

Bloomberg commented that some Asian nations have sought to buy more farm goods from the US to appease President Donald Trump and reduce tariffs on their own exports.