United States imposes new retroactive tariffs on Taiwan

United States has announced new retroactive tariffs on certain Taiwanese imports including automotive parts, logs, processed wood, and specific wood derivative products, effective 1 May. The tariffs form part of a trade agreement signed by the Trump administration with Taiwan in January, which limits tariffs to no more than 15%. A Federal Register notice states that the US will not impose specific sector tariffs on steel, aluminium, and copper contained in aircraft components manufactured in Taiwan. In exchange for these modifications, including a reduction in the baseline import tariff from Taiwan from 20% to 15%, Taiwan has committed to investing USD 250 billion in US semiconductor and technology manufacturing. The Taiwanese government also promises to provide equivalent credit guarantees to encourage Taiwanese companies’ investments in the US chip sector.