The United States plans to implement retroactive tariff relief for Taiwan’s non-semiconductor products, which have been subject to Section 232 measures. This decision was announced by Taiwan’s Executive Yuan and is expected to be effective from May 1. This development follows two months of negotiations between Taipei and Washington, conducted under a bilateral investment memorandum of understanding.
The upcoming measures will set a tariff cap of 15 percent on various Taiwanese products such as auto parts, logs, lumber, and wood derivative goods. Additionally, derivatives of steel, aluminum, and copper used in aircraft components will be exempt from Section 232 tariffs. Taiwanese officials have expressed that these tariff reductions will enhance the international competitiveness of their domestic industries and boost their market presence in the United States.
Earlier this year, the two nations signed an agreement that outlines three main tariff arrangements: a 15 percent reciprocal tariff rate for Taiwan without additional most-favored nation charges, preferential treatment for semiconductor-related products, and preferential provisions for non-semiconductor goods currently affected by Section 232 tariffs.
Notably, the US has not imposed Section 232 tariffs on exports of Taiwanese semiconductors and associated products. Taiwan’s government continues to engage with the US Department of Commerce to expedite the implementation of these favorable terms for the non-semiconductor sectors.
