The United States is preparing to implement retroactive tariff relief for non-semiconductor products from Taiwan, currently subject to Section 232 measures, as announced by Taiwan’s Executive Yuan. This move comes after two months of negotiations under a bilateral investment memorandum of understanding between Taipei and Washington and is expected to commence on May 1.
The planned tariff relief will cap duties on various Taiwanese products, including auto parts, logs, lumber, and wood derivative goods, at 15 percent. Additionally, steel, aluminum, and copper derivative products used in aircraft components will be exempt from the Section 232 tariffs. These concessions aim to enhance the international competitiveness of Taiwan’s industries and broaden their access to the U.S. market.
The agreement, finalized earlier in the year, outlines three primary tariff arrangements: a reciprocal tariff rate of 15 percent for Taiwan, excluding most-favored nation charges; preferential treatment for semiconductor-related products; and concessions for non-semiconductor goods currently impacted by Section 232 tariffs.
Notably, the U.S. has not enforced Section 232 tariffs on Taiwanese semiconductor exports and related products. In light of this, Taipei remains in discussions with the U.S. Department of Commerce to expedite the application of these new concessions for non-semiconductor sectors.