US Announces Section 232 Tariff Relief for Taiwan Non-Semiconductor Products to Implement Investment MOU

According to the Central News Agency (CNA), following the signing of an investment MOU earlier this year, Taiwan has become the first country to receive Section 232 tariff relief from the US. The US government officially announced the relief measures for non-semiconductor products today, which include lowering the tariff rate for auto parts to 15%, retroactive to May 1. The US Department of Commerce and the Office of the US Trade Representative (USTR) published the announcement in the Federal Register. The notice states that the Secretary of Commerce and the USTR are taking necessary actions to implement the memorandum. Riley Walters, a senior fellow at the Hudson Institute, analyzed that the US is moving to implement parts of the agreement, anticipating that Taiwan will fulfill its commitments once the US completes Section 301 tariff adjustments later this year. The MOU includes provisions for a 15% reciprocal tariff rate, promotion of high-tech investment, and helping Taiwanese firms enter the US supply chain. Vice Premier Cheng Li-chun noted that the legal basis for the reciprocal tariff has expired, and the US is rebuilding it through Section 301 investigations. Regarding the $250 billion investment commitment, Cheng stated that the government is providing credit guarantees to support financial institutions in offering credit lines to companies. National Development Council Minister Yeh Chun-hsien added that the Executive Yuan has approved the plan, and MOUs with banks are expected to be signed by mid-June, allowing companies to begin applications.