Bloomberg: US Relaxes Some Tariffs on Taiwan to Implement Trade Agreement

Central News Agency, Washington, May 27. Bloomberg News reported today that the Trump administration will cancel some tariffs on Taiwanese imports to implement parts of the previously reached US-Taiwan trade agreement. According to a notice in the US Federal Register, the US will eliminate derivative tariffs on aluminum, steel, and copper imposed on aircraft parts imported from Taiwan. Washington will also adjust industry tariffs on automotive parts, raw timber, lumber, and wood derivatives, with a cap on the comprehensive tariff rate for these goods set at 15%. These tariffs were implemented under Section 232 of the US Trade Expansion Act of 1962, which allows the US to impose tariffs when it determines that imported goods threaten national security. This measure by Washington is intended to fulfill the US-Taiwan trade agreement, but it comes at a time when tensions surrounding the Taiwan issue are rising. Earlier this month, US President Trump held a summit with Chinese President Xi Jinping. During the meeting, Xi explicitly warned Trump that if the Taiwan issue is not handled properly, relations between the world's two largest economies could slide toward conflict. Trump is also evaluating a potential $14 billion arms sale to Taiwan and has hinted at the possibility of speaking directly with Taiwan President Lai Ching-te. However, both the arms sale and the potential call could derail US-China relations. Taiwan has pledged to increase investment in the US semiconductor supply chain, and in the reciprocal trade agreement reached in February this year, Taiwan also agreed to open market access in multiple areas, including industrial and agricultural exports.