United States modifies tariffs on certain products of Taiwan, implementing trade agreement signed earlier this year
Implements tariff caps of 15% on select Taiwanese auto parts and wood products, and eliminates tariffs on specific civil aircraft components starting May 1, 2026.
The U.S. Department of Commerce’s International Trade Administration and the Office of the United States Trade Representative (USTR) today released a notice amending the Harmonized Tariff Schedule of the United States (HTSUS) to implement tariff modifications agreed to under a memorandum of understanding (MOU) with Taiwan.
On January 15, 2026, the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (TECRO) signed an MOU in which the United States agreed to modify tariffs imposed under Section 232 in certain respects.
Executive Order 14346 (September 5, 2025) authorized the Secretary of Commerce and USTR to implement trade and security agreements relating to national emergencies or national security threats identified under Section 232 of the Trade Expansion Act of 1962. Under the January 2026 MOU, the United States committed to limiting Section 232 duties on certain Taiwanese automobile parts, timber, lumber, and wood derivative products to a maximum of 15%. Today’s notice implements such commitments, including:
- For eligible products with an HTSUS Column 1 duty rate of 15% or more, no Section 232 duties will apply.
- For those with a Column 1 duty rate of less than 15%, an additional ad valorem tariff will be applied such that the total combined rate equals 15%.
Furthermore, the United States is removing derivative Section 232 steel, aluminum, and copper tariffs from specified civil aircraft components that are products of Taiwan.
These HTSUS modifications are effective for qualifying goods entered for consumption, or withdrawn from warehouse consumption, on or after May 1, 2026.
Read CBP guidance (CSMS # 68762890)