The United States plans to implement retroactive tariff relief for Taiwan’s non-semiconductor products that are currently subject to Section 232 measures, as announced by Taiwan’s Executive Yuan. This initiative, finalized through two months of negotiations between Taipei and Washington, is expected to be enacted on May 1 under a bilateral investment memorandum of understanding.
According to the agreement, tariffs on a range of products including auto parts, logs, lumber, and other wood derivative goods will be capped at 15 percent. Additionally, steel, aluminum, and copper derivatives used in aircraft components will be exempt from Section 232 tariffs. These concessions are aimed at bolstering the international competitiveness of Taiwanese industries and enhancing their ability to access the U.S. market.
The deal, which was signed earlier in the year, comprises 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 relief for non-semiconductor goods that are already facing Section 232 tariffs.
The Taiwanese government emphasized that the U.S. has not imposed Section 232 tariffs on Taiwanese semiconductor exports and related products. Meanwhile, discussions are ongoing with the U.S. Department of Commerce to expedite the implementation of these new concessions for non-semiconductor sectors.