The United States plans to implement retroactive tariff relief for Taiwan’s non-semiconductor products under Section 232 measures, as confirmed by Taiwan’s Executive Yuan. This move comes after two months of negotiations between Taipei and Washington through a bilateral investment memorandum of understanding. The new preferential tariff treatment is slated to begin on May 1.
The upcoming measures will cap tariffs at 15 percent on various Taiwanese products, including auto parts, logs, lumber, and wood derivatives. Additionally, derivatives of steel, aluminum, and copper that are used in aircraft components will be exempted from Section 232 tariffs. Taiwanese officials believe that these tariff concessions will enhance the global competitiveness of their industries and broaden their reach within the US market.
Earlier this year, the two nations signed an agreement outlining three pivotal tariff arrangements: a 15 percent reciprocal tariff rate for Taiwan without additional most-favored nation charges, preferential treatment for semiconductor-related products, and preferential treatment for non-semiconductor goods currently subject to Section 232 tariffs. This agreement is part of ongoing efforts to strengthen trade relations between the two countries.
Interestingly, the US has not imposed Section 232 tariffs on Taiwan’s semiconductor exports and related products. Despite this, Taipei has maintained dialogue with the US Department of Commerce to expedite the implementation of the new concessions for the non-semiconductor sectors. These discussions aim to facilitate smoother trade operations and support Taiwan’s economic interests in the US.