The United States plans to implement retroactive tariff relief for Taiwan’s non-semiconductor goods, which are subject to Section 232 measures, as announced by Taiwan’s Executive Yuan. This move is anticipated to commence on May 1, following a two-month negotiation period between Taipei and Washington that was part of a bilateral investment memorandum of understanding.
The proposed tariff adjustments will set a cap of 15 percent on tariffs for items such as auto parts, logs, lumber, and wood derivative products. Additionally, derivatives of steel, aluminum, and copper, which are utilized in the production of aircraft components, will also be exempted from Section 232 tariffs.
According to Taiwanese officials, these tariff concessions are expected to bolster the global competitiveness of domestic industries and enhance their ability to penetrate the U.S. market. The arrangement, agreed upon earlier in the year, encompasses three primary tariff provisions: a reciprocal 15 percent tariff rate for Taiwan without the imposition of further most-favored nation charges, preferential treatment for semiconductor-related products, and special concessions for non-semiconductor goods currently affected by Section 232 tariffs.
The Taiwanese government has noted that the United States has not applied Section 232 tariffs to Taiwanese semiconductor exports and related products. In a bid to expedite the new concessions for sectors outside of semiconductors, Taipei has maintained ongoing discussions with the U.S. Department of Commerce.