The United States has agreed to lower tariffs on Taiwanese goods from 20 percent to 15 percent, without stacking them on existing most-favored-nation (MFN) rates, Taiwan’s Executive Yuan announced Friday. The deal, reached in trade negotiations that wrapped up Thursday (U.S. time), also provides semiconductors and related products with the most favorable treatment under Section 232 of the Trade Expansion Act, the Cabinet said.
It includes commitments to expand supply chain investment cooperation and deepen Taiwan-U.S. strategic partnership on artificial intelligence, according to the statement. The new 15 percent tariff aligns with U.S. rates on goods from major trade partners such as Japan, South Korea, and the European Union. With this agreement, Taiwan becomes the first country in the world to secure the most favorable treatment for its semiconductor and related product suppliers, which should greatly reduce uncertainties for the local semiconductor industry, the Cabinet said. Beyond the tech sector, lowering the import duty on Taiwanese goods to 15 percent without stacking it on existing MFN rates should help make Taiwan’s non-tech industries more competitive, as they will now be on equal footing with Japan, South Korea, and the EU, the Cabinet added.
Taiwan has also secured the most favorable treatment for other items such as auto parts, wooden furniture, and aircraft components under Section 232. Additionally, Taipei and Washington have agreed to establish a Section 232 negotiation mechanism.