Background

The Department of Commerce and the Office of the U.S. Trade Representative have issued a notice implementing tariff-related elements of a memorandum of understanding concluded earlier this year between the U.S. and Taiwan. This notice does not implement the terms of a subsequent bilateral agreement on reciprocal trade, which has not yet entered into force.

Effective with respect to goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on May 1, 2026, this notice updates the Harmonized Tariff Schedule of the U.S. to establish the following caps on Section 232 tariff rates on products of Taiwan.

- for automobile parts: the greater of 15 percent, inclusive of most-favored-nation rates (HTSUS 9903.94.67), or MFN rates (HTSUS 9903.94.66)

- for automobile parts the importer certifies will be used for auto production or repair activity in the U.S.: the greater of 15 percent, inclusive of MFN rates (HTSUS 9903.94.69), or MFN rates (HTSUS 9903.94.68)

- for timber, lumber, and wood derivatives: 15 percent inclusive of MFN rates (HTSUS 9903.76.24)

- for steel, aluminum, and copper: no Section 232 tariff on civil aircraft components (HTSUS 9903.96.03)

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