Executive Yuan: ART Commitments Recognized; US Section 301 Tariffs on Taiwan More Favorable than Japan and South Korea
The U.S. Department of Commerce, citing forced labor, plans to impose 10% tariffs on Taiwan and 13 other countries under Section 301. The Executive Yuan's Taiwan-US Economic and Trade Working Group stated that because the U.S. recognized the Reciprocal Trade Agreement (ART) signed between Taiwan and the U.S., Taiwan was included among the 14 countries recommended for the lower 10% tariff rate, which is more favorable than the 12.5% rate recommended for Japan, South Korea, and others. The final tariff rate has not been determined, but Taiwan is confident in securing relatively preferential treatment.
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- 📰 Published: June 3, 2026 at 17:15
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(Central News Agency, Reporter Lai Yu-chen, Taipei, June 3) The U.S. Department of Commerce, citing forced labor, plans to impose 10% tariffs on Taiwan and 13 other countries under Section 301. The Executive Yuan's Taiwan-US Economic and Trade Working Group explained that because the U.S. recognized the Reciprocal Trade Agreement (ART) signed between Taiwan and the U.S., Taiwan was included among the 14 countries recommended for the lower 10% tariff rate. This announcement is only part of the Section 301 investigation process; the final tariff rate has not been set, and Taiwan is confident it will receive relatively preferential treatment among trade surplus countries.
The legal basis for the U.S. reciprocal tariff rate has expired. Instead, the U.S. is temporarily imposing a uniform 10% tariff globally, stacked on top of existing MFN rates, for a maximum of 150 days (until the end of July) under Section 122 of the Trade Act of 1974, while rebuilding the legal foundation through the Section 301 investigation. The Office of the U.S. Trade Representative (USTR) on June 2 (U.S. Eastern Time) released a report under Section 301 of the Trade Act of 1974 on the issue of a "Ban on Imports of Forced Labor Goods," recommending additional tariffs of 10% or 12.5% on 60 global economies. Taiwan was listed among the 14 countries recommended for a 10% rate.
According to a press release from the Executive Yuan's Taiwan-US Economic and Trade Working Group, the U.S. report categorized 54 of the 60 economies as "not implementing and not effectively enforcing a ban on imports of forced labor goods," and 6 economies as "not effectively enforcing a ban on imports of forced labor goods," recommending different additional tariff rates of 10% or 12.5%.
A total of 14 countries were recommended for the 10% tariff rate. The Working Group explained that Taiwan, Indonesia, and Malaysia were included because they have signed a "Reciprocal Trade Agreement" (ART) with the U.S. and committed to enforcing a ban on imports of forced labor goods. Additionally, the EU, Canada, Indonesia, and the UK were also recommended for the lower 10% rate because they have already implemented or partially implemented a ban on imports of forced labor goods. Japan, South Korea, China, India, and 42 other countries were recommended for the higher 12.5% tariff rate.
The Working Group stated that the U.S. recognition of Taiwan's active and concrete commitments in this Section 301 investigation report, and its inclusion of Taiwan among the 14 countries eligible for the lower rate, demonstrates that the ART is a favorable foundation for responding to the U.S. Section 301 investigation, which was initiated to replace the legal basis of the International Emergency Economic Powers Act (IEEPA).
Regarding the effective date of the tariff rates, the Working Group said that the relevant tariff measures have not been immediately announced or enacted. Interested parties can submit comments from today until July 6. A public hearing will be held on July 7, and rebuttal comments can be submitted within 5 days after the hearing. Currently, USTR has not mentioned a publication date for the final measures in its investigation report or the Federal Register.
The Working Group emphasized that to maintain the best treatment and relative advantages secured through the ART, Taiwan and the U.S. will continue to maintain close contact, fully consolidating Taiwan's national and industrial interests. Taiwan expects and is confident that the final results by the end of July will fully reflect the existing negotiation outcomes between Taiwan and the U.S., securing relatively preferential treatment among trade surplus countries.
Furthermore, the Working Group noted that the items recommended by USTR for Section 301 tariffs do not include products and components already subject to Section 232 tariffs, nor items whose taxation would cause supply shortages within the U.S. (Editor: Wan Shu-chang) 1150603
The legal basis for the U.S. reciprocal tariff rate has expired. Instead, the U.S. is temporarily imposing a uniform 10% tariff globally, stacked on top of existing MFN rates, for a maximum of 150 days (until the end of July) under Section 122 of the Trade Act of 1974, while rebuilding the legal foundation through the Section 301 investigation. The Office of the U.S. Trade Representative (USTR) on June 2 (U.S. Eastern Time) released a report under Section 301 of the Trade Act of 1974 on the issue of a "Ban on Imports of Forced Labor Goods," recommending additional tariffs of 10% or 12.5% on 60 global economies. Taiwan was listed among the 14 countries recommended for a 10% rate.
According to a press release from the Executive Yuan's Taiwan-US Economic and Trade Working Group, the U.S. report categorized 54 of the 60 economies as "not implementing and not effectively enforcing a ban on imports of forced labor goods," and 6 economies as "not effectively enforcing a ban on imports of forced labor goods," recommending different additional tariff rates of 10% or 12.5%.
A total of 14 countries were recommended for the 10% tariff rate. The Working Group explained that Taiwan, Indonesia, and Malaysia were included because they have signed a "Reciprocal Trade Agreement" (ART) with the U.S. and committed to enforcing a ban on imports of forced labor goods. Additionally, the EU, Canada, Indonesia, and the UK were also recommended for the lower 10% rate because they have already implemented or partially implemented a ban on imports of forced labor goods. Japan, South Korea, China, India, and 42 other countries were recommended for the higher 12.5% tariff rate.
The Working Group stated that the U.S. recognition of Taiwan's active and concrete commitments in this Section 301 investigation report, and its inclusion of Taiwan among the 14 countries eligible for the lower rate, demonstrates that the ART is a favorable foundation for responding to the U.S. Section 301 investigation, which was initiated to replace the legal basis of the International Emergency Economic Powers Act (IEEPA).
Regarding the effective date of the tariff rates, the Working Group said that the relevant tariff measures have not been immediately announced or enacted. Interested parties can submit comments from today until July 6. A public hearing will be held on July 7, and rebuttal comments can be submitted within 5 days after the hearing. Currently, USTR has not mentioned a publication date for the final measures in its investigation report or the Federal Register.
The Working Group emphasized that to maintain the best treatment and relative advantages secured through the ART, Taiwan and the U.S. will continue to maintain close contact, fully consolidating Taiwan's national and industrial interests. Taiwan expects and is confident that the final results by the end of July will fully reflect the existing negotiation outcomes between Taiwan and the U.S., securing relatively preferential treatment among trade surplus countries.
Furthermore, the Working Group noted that the items recommended by USTR for Section 301 tariffs do not include products and components already subject to Section 232 tariffs, nor items whose taxation would cause supply shortages within the U.S. (Editor: Wan Shu-chang) 1150603
FAQ
Why did the U.S. initiate the Section 301 investigation?
The U.S. initiated the investigation under Section 301 of the Trade Act of 1974 to replace the legal basis of the International Emergency Economic Powers Act (IEEPA).
Which other countries are recommended for the 10% tariff rate?
Besides Taiwan, other countries recommended for the 10% rate include Indonesia, Malaysia, the EU, Canada, and the UK.
When will these tariffs take effect?
The effective date is currently undetermined. A final decision is expected by the end of July, following a comment period ending July 6 and a public hearing on July 7.