Synopsis
Taiwan has secured preferential treatment for its semiconductor exports under a January trade deal with the US, ensuring favourable terms should future Section 232 tariffs be imposed. While the US has indicated potential tariffs on chips, no concrete timeline exists, according to Taiwan's vice premier.Listen to this article in summarized format
The U.S. is removing or cutting some tariffs to 15% on Taiwanese imports as part of a bilateral trade deal reached in January, covering goods including auto and aircraft parts, wood and steel, according to a notice on the Federal Register. The tariff move is, in effect, retroactive from May 1 and will be officially published on Thursday U.S. time, according to the notice.
Under the terms of the January agreement, Taiwan secured preferential treatment in advance under any future measures on semiconductors under Section 232, a U.S. national security investigation into imports of key products like chips and pharmaceuticals.
Speaking in Taipei, Cheng said the U.S. has repeatedly indicated it might impose Section 232-related tariffs on semiconductors, but Taiwan secured most-favoured-nation treatment for chips with the January deal.
That means that no matter when the U.S. proposes Section 232 semiconductor tariffs, it must grant corresponding preferential treatment to Taiwanese businesses investing in the U.S., she added.
These pre-secured preferential treatments will remain unchanged and the U.S. has no concrete timetable for Section 232 semiconductor tariffs, Cheng said.
Taiwan is a major semiconductor producer and home to TSMC , the world's largest contract chipmaker. TSMC is investing $165 billion to build factories in the U.S. state of Arizona.
