TAIPEI (Taiwan News) — The US has launched a Section 301 investigation into Taiwan and other trading partners, but the Cabinet said the trade agreement signed last month will continue to ensure Taiwan’s negotiated advantages remain intact.

The Office of the United States Trade Representative (USTR) said Wednesday that it would initiate Section 301 investigations under the Trade Act of 1974 into 16 major trading partners, including China, the EU and South Korea, per CNA. Cabinet Spokesperson Michelle Lee (李慧芝) on Thursday described the Section 301 investigation as an alternative legal mechanism following the temporary tariffs imposed under Section 122.

The US is rebuilding tariff measures after the Supreme Court invalidated the use of the International Emergency Economic Powers Act. Taiwan’s negotiating team has maintained close contact with the USTR and the Department of Commerce via video and other channels to prepare for the best possible response. The US had notified Taiwan of its intentions before publicly announcing the investigation.

Lee said Taiwan and the US have completed signing the Agreement on Reciprocal Trade (ART), and the agreement already includes consensus on issues potentially covered under Section 301 investigations. She said the results of the investigation are expected to fully reflect the negotiation outcomes of ART, ensuring that Taiwan’s relative advantages and most-favored treatment under the agreement will not be diminished.

Lee added that US Trade Representative Jamieson Greer said US President Donald Trump intends to maintain existing agreements with countries. If countries wish to uphold their agreements, all factors, including commitments made and implementation performance, will be considered once the investigation is complete. The US will align these considerations with the procedural requirements of Section 301.

The agreement was signed in mid-February, establishing a 15% tariff for Taiwan that will not be stacked, applying most-favored treatment under Section 232, and exempting over 2,000 Taiwanese products from tariffs. It was originally scheduled to be submitted to the Legislative Yuan alongside an agreement on trade and investment signed in January, but subsequent procedures are now pending due to major changes in the US tariff policy.

Section 301 stipulates that the US may levy tariffs if a foreign government imposes an “unreasonable or discriminatory” measure that “burdens or restricts” US commerce.