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The U.S. and Taiwan have finalized a trade and investment agreement that caps Section 232 tariff rates on specified imports from Taiwan at 15%, according to the U.S. Commerce Department.
The U.S. locked in the rate cap on Section 232 tariffs on certain Taiwan automobile parts, timber, lumber and related wood products, along with some aircraft parts containing steel, aluminum or copper, per the document published May 28. The tariff changes are retroactive to May 1.
The finalized agreement is narrowly focused on Section 232 tariffs, as outlined in a January framework accord with Taiwan. That pact also listed zero percent reciprocal tariffs on generic pharmaceuticals and their ingredients, and unavailable natural resources, none of which are covered in the May 28 document.
The latest pact is the U.S. administration’s response to the Supreme Court’s February ruling that invalidated country-specific tariffs imposed by President Donald Trump in 2025, said Greg Husisian, partner and chair of Foley & Lardner’s International Trade and National Security Practice. Taiwan goods were subject to 20% reciprocal tariffs when the initial agreement framework was released in January.
