TAIPEI (Taiwan News) — Vice Premier Cheng Li-chiun (鄭麗君) on Tuesday said the US Supreme Court ruling striking down tariffs imposed under emergency powers will not affect Taiwan’s preferential tariff treatment secured under its agreements with the US, including for auto parts and aircraft components.

Cheng added that potential future tariffs on semiconductors and derivative products will also not alter Taiwan’s terms, per CNA. Taiwan has secured conditions, including quota exemptions and most-favored-nation treatment for goods outside quota limits.

She said that the MOU signed between the two countries stipulates that if the US expands its Section 232 investigations, both sides will continue consultations and seek appropriate treatment to reduce uncertainty for industries.

Cheng stressed that although the legal basis for the tariffs has been invalidated, the US has already initiated alternative measures. The overall direction of US tariff policy will therefore continue, though the policy tools may change.

However, she also believes that countries that have already reached agreements with the US should have greater room to negotiate improved treatment.

The Agreement on Reciprocal Trade was signed in mid-February, setting Taiwan’s tariff rate at 15% without stacking and granting most-favored-nation treatment under Section 232, along with exemptions for more than 2,000 products exported to the US. The agreement and a Taiwan-US investment cooperation MOU signed in January were originally slated for Legislative Yuan review, but further procedures are now pending due to major changes in US tariff policy.