Taiwan Secures Preferential Treatment Ahead of Potential US Chip Tariffs
Taiwan said the United States has not yet set a timetable for imposing Section 232 tariffs on semiconductors, while preferential treatment for Taiwanese companies has already been secured under a bilateral trade agreement reached earlier this year.
Taiwan Vice Premier Cheng Li-chiun stated on Thursday that the January trade agreement with the U.S. guarantees favourable treatment for Taiwan in the event that future semiconductor tariffs are introduced under Section 232 investigations.
US Reduces Tariffs on Selected Taiwanese Imports
According to a notice published in the Federal Register, the United States will reduce or remove some tariffs on Taiwanese imports, with certain duties being lowered to 15%.
The tariff adjustments apply to products such as auto parts, aircraft components, wood and steel. The measures are retroactive from May 1 and are expected to be officially published on Thursday U.S. time.
Taiwan Gains Protection Under Section 232 Measures
The January trade agreement also includes advance preferential treatment for Taiwan under any future Section 232 actions involving semiconductors.
Section 232 refers to U.S. national security investigations into imports of strategically important products, including semiconductors and pharmaceuticals.
Speaking in Taipei, Cheng said Washington has repeatedly indicated the possibility of future semiconductor tariffs, but Taiwan successfully secured most-favoured-nation treatment for its chip sector through the agreement.
No Concrete Timeline for Semiconductor Tariffs
Cheng explained that regardless of when the United States decides to introduce semiconductor tariffs under Section 232, Taiwanese businesses investing in the U.S. must continue receiving corresponding preferential treatment.
She added that these pre-arranged benefits will remain unchanged and confirmed that the U.S. currently has no specific timetable for imposing semiconductor-related tariffs.
Taiwan’s Strategic Role in the Global Chip Industry
Taiwan remains one of the world’s most important semiconductor manufacturing hubs and is home to TSMC, the world’s largest contract chipmaker.
TSMC is currently investing $165 billion into semiconductor factory projects in the U.S. state of Arizona as part of its long-term expansion strategy.
