New Trade Agreement Alters Tariffs on Taiwan Goods
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On May 28, 2026, the U.S. Department of Commerce and the Office of the United States Trade Representative announced changes in tariffs related to a new trade agreement between the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (TECRO). This adjustment comes after President Trump signed Executive Order 14346 on September 5, 2025, allowing for such modifications.
What’s in the Agreement?
In January and February 2026, AIT and TECRO signed two deals, known as the Memorandum of Understanding (MOU) and the Agreement on Reciprocal Trade (ART), which involve changes to tariffs and promote investment in important industries. The MOU aims to strengthen U.S. supply chains in semiconductors and other key technologies.
Key Changes to Tariffs
The tariffs on automobile parts, timber, lumber, and wood products from Taiwan have been modified. Tariffs for these goods will not exceed 15%. If the current tariff rate is already higher than 15%, the Section 232 tariffs will not apply. Additionally, tariffs on derivative steel, aluminum, and copper materials from aircraft components made in Taiwan will be removed.
These changes aim to boost investment and production in the U.S., particularly in industries such as semiconductors and technology. The agreement also encourages Taiwanese companies to invest in the U.S., which could increase demand for U.S. manufactured products.
Next Steps and Impact
The amended tariffs are effective starting May 1, 2026. This means any Taiwanese goods entering the U.S. after this date will be subject to the new rates. Expected benefits include increased economic activity and reduced supply chain risks, especially in the automobile industry.
The U.S. government will continue monitoring the effects of these changes on national security and trade practices. Further amendments might occur if new circumstances arise.
Contact Information
For more information, Emily Davis at the International Trade Administration and Tim Wineland from the Office of the U.S. Trade Representative are available to address inquiries.
This change is part of broader efforts to strengthen trade relations between the United States and Taiwan and to secure leadership in critical industries through strategic partnerships.
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This article includes content collected from the Federal Register (federalregister.gov). The content is not an official government publication. This article is for informational purposes only and does not constitute legal advice. For case-specific consultation, please contact us. Read our full Legal Disclaimer, which also includes information on translation accuracy.
