The United States is preparing to implement retroactive tariff relief on non-semiconductor products from Taiwan that are currently affected by Section 232 measures. This development was disclosed by Taiwan’s Executive Yuan, with the tariff adjustments set to begin on May 1. The decision follows extensive negotiations over two months between Taipei and Washington as part of a bilateral investment memorandum of understanding.
The forthcoming tariff adjustments will place a ceiling of 15 percent on duties for products such as auto parts, logs, lumber, and wood derivative items. Additionally, derivative products of steel, aluminum, and copper used in aircraft components are slated to receive exemptions from Section 232 tariffs. Taiwanese officials have indicated that these tariff concessions will bolster the international competitiveness of local industries and facilitate their expansion into the US market.
The agreement, which was finalized earlier in the year, incorporates three critical tariff arrangements: a 15 percent reciprocal tariff rate for Taiwan without the imposition of additional most-favored nation charges, preferential treatment for semiconductor-related products, and specific concessions for non-semiconductor goods currently under Section 232 tariffs.
Notably, the United States has refrained from imposing Section 232 tariffs on Taiwanese semiconductor exports and related products. Meanwhile, Taipei has maintained its dialogue with the US Department of Commerce, aiming to expedite the implementation of these new concessions for sectors outside the semiconductor industry.