On January 15, 2026, the U.S. Department of Commerce announced a new agreement with Taiwan establishing a revised tariff framework tied to expanded market access and significant Taiwanese investment in U.S. industries.
Under the agreement, Section 232 duties on Taiwanese auto parts, timber, lumber, and wood derivative products will be capped at 15%, rather than the 25% rate applied to most countries, and the U.S. reciprocal tariff on Taiwanese goods will also total no more than 15%. A 0% reciprocal tariff will apply to generic pharmaceuticals, their generic ingredients, aircraft components, and unavailable natural resources.
While the majority of Taiwanese semiconductor imports remain untaxed at this time, Commerce indicated that future Section 232 measures on semiconductors will be structured to incentivize U.S. investment. Specifically, Taiwanese companies constructing new U.S. semiconductor facilities may import up to 2.5 times their planned U.S. capacity without Section 232 duties during the approved construction period, with a lower preferential Section 232 rate for above-quota imports, and companies that have completed new U.S. chip production projects may continue to import up to 1.5 times their U.S. production capacity without paying Section 232 duties.
The agreement is part of a broader strategic partnership under which Taiwanese enterprises have committed to at least $250 billion in direct U.S. investments, with additional credit guarantees of at least $250 billion, aimed at strengthening U.S. semiconductor supply chains, advanced manufacturing, and national security.
For further details on the agreement, please refer to the U.S. Department of Commerce Fact Sheet: Restoring American Semiconductor Manufacturing Leadership Through an Agreement on Trade & Investment with Taiwan