TAIPEI (Taiwan News) — Taiwan will not face an additional 10% US tariff on top of its existing most-favored-nation (MFN) rates under a Section 301 probe into forced labor imports, Vice Premier Cheng Li-chiun (鄭麗君) said Friday.
US President Donald Trump signed a memorandum on Thursday directing the US trade representative to announce final measures under a Section 301 investigation into the importation of products made with forced labor, per FTNN News. The measures apply to the 60 largest US trading partners, which account for 99.4% of total US imports.
Cheng, who serves as the convener of the US-Taiwan economic and trade task force, said Washington recognized Taiwan's commitment under the US-Taiwan Agreement on Reciprocal Trade (ART) to ban imports made with forced labor. As a result, Taiwan will face a maximum 10% tariff under the Section 301 probe without an additional MFN levy and will qualify for exemptions under a designated list.
However, Cheng said the US has not yet released the results of a separate Section 301 investigation into structural overcapacity, according to FTNN News. The final tariff rate will be determined by Washington after both investigations are completed, and Taiwan will continue talks to preserve favorable treatment obtained through the ART and MOU negotiations, she added.
Taiwan and the EU will avoid additional MFN levies because they have committed through trade agreements or related arrangements to prohibit imports linked to forced labor. The tariff will account for existing MFN rates, meaning additional duties will only apply when needed to bring covered products to a total tariff rate of 10%.
The tariff order also listed exemptions such as pharmaceuticals, certain electronics, several vehicle categories, and products already subject to Section 232 tariffs. The exemptions also include products critical to supply chain security and economic interests, including goods that could cause shortages in the US or cannot be reasonably sourced elsewhere.
The Cabinet's task force said US Trade Representative Jamieson Greer has indicated that final tariff rates will consider trade agreements reached with individual economies, according to FTNN News. Taiwan will continue communicating closely with Washington to seek the most favorable tariff treatment, it said.
