TAIPEI (Taiwan News) — Taiwan is assessing the impact of a sweeping shift in US tariff policy after the US Supreme Court ruled that President Donald Trump’s broad global tariffs imposed under the 1977 International Emergency Economic Powers Act were invalid, per CNA.
The ruling removes one of Trump’s key tariff tools. Shortly after the decision, the administration invoked Section 122 of the Trade Act of 1974 to impose a 10% tariff on all imports worldwide, though on Saturday, Trump announced an increase to 15%. The tariff is temporary, remaining in place for 150 days, after which congressional approval is required for an extension.
In response, Taiwan’s Cabinet convened an internal meeting to discuss the policy shift and formulate a strategy. Officials said Taiwan’s core objective is to safeguard benefits associated with most-favored-nation status, particularly regarding Section 232 tariffs, and to address concerns stemming from Section 301 investigations, which allow the US to impose punitive tariffs if foreign industries are deemed to engage in unfair trade practices.
A Taiwan-US economic and trade task force led by Vice Premier Cheng Li-chiun (鄭麗君) is also reviewing developments. Although the US Supreme Court struck down the IEEPA-based tariffs, the Trump administration retains five other trade mechanisms, including Section 232, Section 301, Section 201, Section 338, and the recently invoked Section 122.
An official familiar with the matter said Section 122 is temporary and limited to 150 days, while Section 232 remains the most significant tool, allowing the US government to impose tariffs on imports that affect national security. Trump first imposed Section 232 tariffs on steel and aluminum imports, including those from Taiwan, in 2018 and raised them to 50% last year.
Taiwan has previously been affected by Section 301 tariffs. In the 1980s, amid a widening trade deficit and disputes over piracy and software misappropriation, Taiwan was targeted under Section 301, prompting the government to strengthen intellectual property protections and establish related legislation.
