Taiwan Gets 15% All-in IEEPA Rate, 15% for Auto Parts
Taiwanese auto parts and derivative goods subject to the lumber 232 actions will be subject to a 15% tariff, rather than the 25% rates applicable to most countries, the Commerce Department announced. The reciprocal tariff for Taiwan will also be cut, from 20% to 15%, inclusive of most-favored nation duties.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Taiwan's main export to the U.S. is semiconductors; the recent 232 action leaves the vast majority of chips untaxed, but said new rates could follow months from now.
The Commerce Department did not say what rate Taiwanese chips might face, but said that "Taiwanese companies building new U.S. semiconductor capacity may import up to 2.5 times that planned capacity without paying Section 232 duties during the approved construction period, with a lower preferential Section 232 rate for above-quota imports.
"Taiwanese companies who have completed new chip production projects in the United States will still be able to import 1.5 times their new U.S. production capacity without paying Section 232 duties."
There will be no reciprocal tariff on generic pharmaceuticals, their generic ingredients, aircraft components, and unavailable natural resources.