The United States is preparing to implement retroactive tariff relief for a range of non-semiconductor products from Taiwan, as outlined by Taiwan’s Executive Yuan. This move is part of a broader effort to adjust Section 232 measures and will be effective starting May 1. The decision follows two months of negotiations between Taipei and Washington, conducted under the framework of a bilateral investment memorandum of understanding.

The upcoming tariff adjustments will apply to various products, including auto parts, logs, lumber, and wood derivative items, with tariffs capped at 15 percent. Additionally, steel, aluminum, and copper derivative goods used in the manufacturing of aircraft components will be exempt from the Section 232 tariffs. Taiwanese officials have expressed optimism that these tariff concessions will bolster the global competitiveness of their domestic industries and facilitate greater access to the U.S. market.

The agreement, which was finalized earlier this year, encompasses three main tariff arrangements. These include a reciprocal 15 percent tariff rate for Taiwan without the imposition of additional most-favored nation charges, preferential treatment for semiconductor-related exports, and specific concessions for non-semiconductor products that are currently subject to Section 232 tariffs.

According to Taiwan’s government, the U.S. has not applied Section 232 tariffs to Taiwanese semiconductor exports and related items. In the meantime, Taipei continues its dialogue with the U.S. Department of Commerce, seeking to expedite the implementation of the new tariff concessions for sectors outside the semiconductor industry.