 Commerce Reduces Reciprocal and Section 232 tariffs for Certain Taiwan Products |
Source |
American Shipper |
Post Date |
01/19/2026 |
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The Commerce Department announced today, Jan. 15, that it has reached an agreement with Taiwan to expand market access for U.S. companies in the Taiwanese semiconductor, AI, defense technology, telecommunications, and biotechnology industries. In response, the U.S. reciprocal tariff rate applied to Taiwanese goods will total no more than 15% and the Section 232 duties applied to Taiwanese auto parts, timber, lumber, and wood derivative products will total no more than 15%.
The U.S. will also apply a 0% reciprocal tariff for generic pharmaceuticals, their generic ingredients, aircraft components, and unavailable natural resources.
Meanwhile, the Commerce Department said future Section 232 duties applied to Taiwanese semiconductors will ?eward?Taiwanese semiconductor manufacturers that invest in the U.S.
?aiwanese 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,?the Commerce Department said.
Also, Taiwanese companies which have completed new chip production projects in the U.S. will still be able to import 1.5 times their new U.S. production capacity without paying Section 232 duties, according to the Commerce Department announcement, the department said.
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