The United States plans to offer retroactive tariff relief for Taiwan’s non-semiconductor products under Section 232 measures, according to Taiwan’s Executive Yuan. This move comes after two months of negotiations between Taipei and Washington and is expected to be effective starting May 1. The discussions were part of a bilateral investment memorandum of understanding aimed at enhancing trade relations.
The new tariff measures will cap tariffs on specific products, such as auto parts, logs, lumber, and wood derivatives, at 15 percent. Additionally, steel, aluminum, and copper derivatives used in aircraft components will be exempt from the Section 232 tariffs. These concessions are expected to bolster the global competitiveness of Taiwanese industries and facilitate greater access to the American market.
Earlier this year, both nations signed an agreement outlining three main tariff arrangements: a reciprocal 15 percent tariff rate for Taiwan without additional most-favored nation fees, preferential treatment for semiconductor-related products, and special considerations for non-semiconductor goods currently subjected to Section 232 tariffs. Taiwanese officials have emphasized that these changes will provide significant benefits to their industries.
Notably, the United States has not imposed Section 232 tariffs on Taiwan’s semiconductor exports and related products. This sector remains unaffected, allowing Taipei to focus on expediting the implementation of the new concessions for its non-semiconductor sectors. Ongoing discussions with the U.S. Department of Commerce aim to ensure a smooth transition to these new trade measures.