The United States is poised to implement retroactive tariff relief for Taiwan’s non-semiconductor products, which are currently affected by Section 232 measures. This development, as announced by Taiwan’s Executive Yuan, comes after two months of negotiations between Taipei and Washington, leading to an agreement under a bilateral investment memorandum of understanding.
Starting May 1, the new tariff measures will cap tariffs at 15 percent for a variety of products including auto parts, logs, lumber, and wood derivative goods. Additionally, exemptions from Section 232 tariffs will apply to steel, aluminum, and copper derivative products used in aircraft components. These changes aim to enhance the international competitiveness of Taiwanese industries and broaden their access to the US market.
The agreement, signed earlier this year, outlines three significant tariff arrangements: a reciprocal 15 percent tariff rate for Taiwan without additional most-favored nation charges, preferential treatment for semiconductor-related products, and special concessions for non-semiconductor goods currently subject to Section 232 tariffs.
Notably, the United States has not imposed Section 232 tariffs on Taiwanese semiconductor exports and related products. Nonetheless, Taipei is in ongoing discussions with the US Department of Commerce to expedite the implementation of the new tariff concessions for non-semiconductor sectors.