The U.S. has announced tariff relief measures for certain Taiwanese products under a trade and security agreement between the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (TECRO). Retroactively effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EST on May 1, 2026, Section 232 tariffs on certain Taiwanese aircraft components will be eliminated, while tariffs on certain auto parts and wood products will be reduced.
Under the changes, certain Taiwanese wood products will be subject to a reduced 15% tariff rate instead of 25%. Taiwanese auto parts that would otherwise be subject to steel, aluminum, or copper derivative tariffs will instead be subject to a combined 15% tariff rate, including applicable MFN duties.
CBP confirmed that refunds will be available for eligible duties paid on affected entries dating back to May 1, 2026. Duty drawback also remains available for eligible claims for the applicable auto parts and wood product duties.
The tariff modifications stem from commitments made under the January 15, 2026, Memorandum of Understanding (MOU) between AIT and TECRO relating to Taiwan-U.S. investment. The U.S. stated that Taiwan’s planned investments are expected to support increased U.S. construction activity, strengthen domestic semiconductor production, reduce supply chain disruptions for auto manufacturing, and increase demand for U.S.-produced steel, aluminum, copper, and wood products.
Full details on this agreement can be found at the links below: