TAIPEI (Taiwan News) — The US Section 232 tariff concessions for Taiwan’s non-semiconductor products took effect on May 1, lowering duties on items such as auto parts to 15%.
The Cabinet said Wednesday that after continued consultations between Taipei and Washington, the US posted a notice on the Federal Register’s Public Inspection page, per CNA. The notice said the Federal Register will soon formally announce the concessions, including caps of 15% on auto parts, logs, lumber, and wood derivatives, as well as exemptions for steel, aluminum, and copper products used in aircraft components.
Taiwan and the US signed an investment memorandum of understanding in January, making Taiwan the first country to receive preferential treatment under Section 232 tariffs. Vice Premier Cheng Li-chiun (鄭麗君) said that implementing the concessions will enhance the global competitiveness of Taiwan’s industries and support expansion in the US.
The Cabinet said the US has not imposed Section 232 tariffs on semiconductors or related derivatives from Taiwan, CNA reported. For non-semiconductor goods, Taiwan and the US held consultations in March and April, with Taipei urging that concessions on already-tariffed products take effect first.
Under the new rates, tariffs on US-bound auto parts will fall from an average of about 26.71% to 15%, per CNA. Previous rates combined a 25% Section 232 tariff with most-favored-nation duties ranging from 0% to 9%, averaging 1.71%.
For upholstered wooden furniture, kitchen cabinets, vanities, and related wood products, tariffs will also drop from an average of 25% to 15%. Softwood lumber tariffs will remain at 10%.
Core steel, aluminum, and copper aircraft materials were previously subject to Section 232 tariffs of up to 50%, with derivative products at 25% and aviation infrastructure machinery at about 15%. With the exemption in place, only MFN duties will apply, ranging from 0% to 6.6%, averaging 1.12%.
