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Reciprocal Tariff for Taiwan Totals No More Than 15%, Including Auto Parts
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2026-01-16
Taiwan-U.S. tariff negotiations achieved significant progress on January 15, reaching four agreements on key areas: “Taiwan's reciprocal tariffs reduced to 15% without accumulation,” “Semiconductors and related derivative products subject to Section 232 tariffs granted MFN treatment,” “Expanded supply chain investment cooperation,” and “Deepening the Taiwan-U.S. AI strategic partnership.” Representatives from the Taipei Economic and Cultural Representative Office (TECRO) and the American Institute in Taiwan (AIT) signed a memorandum of cooperation at the U.S. Department of Commerce.
The reduction of reciprocal tariffs to 15% without accumulation will grant Taiwan “most-favored-nation treatment” among major U.S. trade deficit countries, placing it on par with trading partners like the EU, Japan, and South Korea. While the agreement primarily focuses on future investment plans in the U.S. and tariff incentives for Taiwan's semiconductor, chip, and high-tech industries, traditional industry sectors like hand tools and machine tools—previously subject to 20% reciprocal tariffs—along with the auto parts industry (facing 25% tariffs under Section 232 starting May 2025) will also see rates reduced to 15%. Additionally, according to the announcement of U.S. Department of Commerce, aircraft components falling under reciprocal tariff coverage will enjoy a 0% tariff rate, benefiting manufacturers in related sectors.
According to Taiwan's negotiation task force, the U.S. has committed that raw materials, equipment, and components required for Taiwanese enterprises investing in, establishing factories in, and operating within the U.S. will be exempted from reciprocal tariffs and Section 232 tariffs. Additionally, regarding potential new items added under the U.S. Section 232 measures in the future, both Taiwan and the U.S. have also agreed to establish a mechanism for ongoing negotiation on most-favored-nation treatment.
台灣
美國
對等關稅
232條款
備忘錄
最惠國優惠
汽車零組件
手工具
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不疊加
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Taiwan
USA
reciprocal tariff
Section 232
MOU
Most Favored Nation
MFN
auto parts
hand tool
aircraft component
total no more than 15%
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