Tariffs Lowered on Some Taiwanese Goods Subject to Section 232 Tariffs Retroactive to May 1
The U.S. will lower tariffs on Taiwanese auto parts and some wood items, as well as eliminate tariffs on aerospace goods that were subject to Section 232 tariffs, retroactive to May 1. A Federal Register notice scheduled to be published May 28 includes a detailed annex of the Harmonized Tariff Schedule changes. The rate for the wood items under subheadings 9903.76.01, 9903.76.02, 9903.76.03 and 9903.76.24 will face 15% tariffs, rather than 25%.
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Items that are covered by steel, aluminum or copper derivatives tariffs under subheadings 9903.82.02 and 9903.82.04-9903.82.19 will not be subject to those tariffs if they are auto parts. Instead, they will face 15% tariffs, including most favored nation rates.
Refunds will be available for duties paid on entries since May 1. The notice said Taiwan deserved the break because its promised investment will drive increased construction in the U.S., which will raise demand for U.S.-produced steel, aluminum, copper and wood. It said that reduced semiconductor supply chain risk, which will result from more domestic chipmaking from Taiwanese firms, also will allow auto parts production to thrive, because there will be less risk that auto plants will be disrupted by chip shortages, as they were during the COVID-19 pandemic.