Vice Premier Cheng Li-chiun on Thursday convened a press conference regarding the U.S. tariff concessions for Taiwan's non-semiconductor products under Section 232 of the U.S. Trade Expansion Act of 1962, as well as the latest developments concerning a Taiwan-U.S. investment memorandum of understanding (MOU), upon which the newest preferential tariff terms are based.
On May 28 (Eastern Daylight Time), the U.S. Federal Register published a notice officially announcing modifications to Section 232 tariffs on Taiwan's non-semiconductor products, with the measures applied retroactively to May 1. Under the newest terms, Taiwanese automobile parts, timber, lumber, and wood derivative products will enjoy a reduced tariff rate of 15% exempt from most-favored-nation (MFN) rate stacking. In addition, Taiwanese aircraft components of steel, aluminum, copper and their derivatives will no longer face Section 232 tariffs, and will instead be subject only to MFN rates. The vice premier said that once the tariff concessions take effect, the preferential treatment secured by Taiwan will be comparable to that granted to the European Union, Japan and South Korea. This will help enhance the international competitiveness of related Taiwanese industries and further expand their investment and business presence in the U.S.
Vice Premier Cheng pointed out that the investment MOU, signed on January 15, 2026, sets out three key arrangements: a reciprocal tariff rate of 15% exempt from MFN rate stacking, preferential Section 232 tariff treatment for semiconductors and their derivative products, and various forms of preferential Section 232 tariff treatment for non-semiconductor products. Regarding reciprocal tariffs, Taiwan aims to further secure preferential arrangements, but specific terms will still need to be finalized by both sides following further developments in the investigations initiated by the Office of the U.S. Trade Representative (USTR) under Section 301 of the U.S. Trade Act of 1974. As for semiconductors and their derivative products, the U.S. has yet to impose Section 232 tariffs on such exports from Taiwan. Taiwan will continue to engage with the U.S. on this issue through government-to-government (G2G) channels to ensure preferential treatment in advance for Taiwanese businesses and minimize uncertainty for those investing in the U.S.
The vice premier further addressed the Section 301 investigations, which target economies deemed by the U.S. government to exhibit structural excess capacity and production, as well as those suspected of failing to prohibit the import of goods produced with forced labor. She noted that, as the investigations are still ongoing, Taiwan will continue to engage in constructive dialogue with USTR and work toward positive outcomes. The vice premier added that Taiwan has already submitted its written comments on the investigations and is actively participating in consultations with the U.S. She expressed hope that the investigation outcomes will fully reflect existing negotiation results and steadfastly safeguard Taiwan's national and industrial interests.