US Imposes 15% Tariff on Taiwanese Goods Under New Trade Deal

The US government announced on Wednesday (28 May) it would impose new retroactive tariffs on Taiwanese automotive parts, logs, processed wood, and certain wood derivatives imported since 1 May. The tariffs are part of a trade agreement signed by the Trump administration with Taiwan in January, capping tariffs at no more than 15%. According to the agreement, a Federal Register notice states the US will not impose sector-specific tariffs on steel, aluminium, and copper contained in aircraft components manufactured in Taiwan. In exchange for these modifications, including a reduction in the US’s base import tariff on Taiwanese goods from 20% to 15%, Taiwan has pledged to invest $250 billion (Rp4,462.75 trillion) in US semiconductor and technology manufacturing. The Taiwanese government has also committed to providing an equivalent amount in credit guarantees to encourage Taiwanese companies to invest in the US chip sector.