The United States is poised to implement retroactive tariff relief for certain Taiwanese non-semiconductor products impacted by Section 232 measures, as reported by Taiwan’s Executive Yuan. This development follows a series of negotiations lasting two months, conducted under a bilateral investment memorandum of understanding between Taipei and Washington. The new tariff measures are slated to come into effect on May 1.
The impending changes will see tariffs on various goods, including auto parts, logs, lumber, and wood derivative products, capped at a maximum of 15 percent. Moreover, derivative products made of steel, aluminum, and copper that are utilized in aircraft components will be exempt from Section 232 tariffs. These concessions aim to bolster the international competitiveness of Taiwan’s industries and facilitate their expanded access to the lucrative US market.
The agreement, formalized earlier this year, encompasses three primary tariff arrangements. These include a 15 percent reciprocal tariff rate for Taiwan, which excludes additional most-favored nation charges, preferential treatment extended to semiconductor-related products, and favorable terms for non-semiconductor goods that are currently subject to Section 232 tariffs.
Importantly, Taiwanese semiconductor exports and related products remain unaffected by the US’s Section 232 tariffs. Taipei continues to engage in discussions with the US Department of Commerce, seeking to expedite the implementation of the new concessions specifically for non-semiconductor sectors.