Cheng Li-chun: Taiwan Seeks to Confirm Preferential Treatment Before US Finalizes Section 232 Semiconductor Tariffs

(CNA, Taipei, June 12, by reporter Tseng Yun-ting) The U.S. Section 232 semiconductor tariffs have not yet been released, drawing high attention from all sectors. Vice Premier Cheng Li-chun stated today that Taiwan has proposed to the U.S. that before the implementation of the Section 232 semiconductor tariffs in the future, negotiations on zero-tariff quotas and exemption lists for Taiwanese firms investing in the U.S. should be completed first to avoid impacting domestic companies. In other words, before confirming the preferential treatment applicable to Taiwanese firms, she hopes the implementation time for the U.S. semiconductor 232 tariffs is "the later, the better."

Attending the signing ceremony for the letter of intent for the "Financing Guarantee Mechanism for Corporate Investment in the U.S." today, Cheng Li-chun pointed out that in the MOU signed in January this year, Taiwan has already secured preferential treatment for potential future Section 232 semiconductor tariffs. This includes zero tariffs within quotas, preferential tariffs outside quotas, and duty exemption for raw materials, equipment, and components required for the production and operation of enterprises investing in the U.S.

She stated that this not only means that enterprises investing in the U.S. can enjoy preferential treatment, but their suppliers can also share in the business opportunities. She hopes that as the high-tech supply chain expands its global footprint, it can also drive the upgrading and transformation of domestic small and medium-sized enterprises and traditional industries.

Cheng Li-chun stated that Taiwan has proposed to the U.S. to complete the negotiations on zero-tariff quotas and exemption lists for Taiwanese enterprises investing in the U.S. before the future implementation of the Section 232 semiconductor tariffs, to avoid impacting domestic enterprises. Before confirming the preferential treatment applicable to Taiwanese enterprises, she hopes the implementation time for the U.S. semiconductor 232 tariffs is "the later, the better."

She stated that Taiwan and the U.S. maintained close communication during the Section 301 investigation period, and the overall interaction is developing in a positive direction. The government is confident in responding to subsequent tariff changes.

Cheng Li-chun stated that the U.S. recently announced the latest results of the Section 301 investigation concerning exemptions from import bans due to forced labor, and Taiwan was listed as one of the countries recommended for a lower tax rate. This shows that the U.S. affirms Taiwan's concrete commitments in the agreement and reflects that the agreement signed between Taiwan and the U.S. has become an important favorable basis for responding to future adjustments in U.S. tariff policies and legal frameworks.

She pointed out that the latest Federal Register notice from the Office of the United States Trade Representative (USTR) has not yet announced the effective date of the relevant recommended tax rates, which means they are not the final rates. It is expected that the U.S. may continue to investigate and propose further measures on issues such as structural overcapacity, and these operations are also seen as part of completing the Section 301 investigation process.

Cheng Li-chun also mentioned that U.S. Trade Representative Jamieson Greer recently stated, "A deal is a deal," indicating that the U.S. will honor the trade agreements signed with countries like the EU and Japan. She believes that Taiwan is also one of the contracting parties, as the U.S. automatically lowered some Section 232 tariff items on steel, aluminum, and copper derivatives in early June, including 28 products such as cranes, with the application covering contracting parties like Taiwan, the UK, Japan, South Korea, and the EU.

Cheng Li-chun emphasized that the government expects and is confident that the final tariff result will reflect the achievements of the trade agreement reached between Taiwan and the U.S. earlier this year. (Editor: Pan Yi-ching) 1150612