TAIPEI (Taiwan News) — Forty-two percent of Taiwan’s exports to the US have escaped Trump’s emergency tariffs due to exemptions in the administration’s trade policy.

In April, Trump announced his “Liberation Day” tariffs on nearly all countries, marking the largest increase in almost a century. However, many products were exempt due to specific exemptions, trade agreements with allies, and overlapping tariff laws, creating numerous loopholes in Trump’s broad tariff policy, per Politico.

Based on last year’s import data, approximately NT$49.82 trillion (US$1.6 trillion) worth of imports should have been subject to tariffs annually, but at least NT$52.93 trillion (US$1.7 trillion) in goods were excluded, either because they were already duty-free or covered by other tariffs. These exemptions for thousands of products could undermine Trump’s efforts to shield US manufacturing, reduce the trade deficit, and raise revenue to fund domestic policies.

For Taiwan’s exports to the US, only 23% were actually hit with the emergency tariffs, the lowest among major US trade partners. About 42% of goods were exempt under bilateral agreements, and another 35% fell under Section 232 of the Trade Expansion Act.

This year, Trump has used Section 232 to impose tariffs on steel, aluminum, copper, cars, and auto parts. Currently, the US has not imposed tariffs on Taiwan’s semiconductors.

Countries facing the highest tariffs were Canada at 62%, followed by Vietnam at 57%, India at 54%, China at 52%, Mexico at 47%, the EU at 36%, Brazil at 33%, the UK at 32%, South Korea at 28%, and Japan at 26%.