Taiwan’s Vice Premier Cheng Li-chiun announced Thursday that while the United States continues to consider semiconductor tariffs under national security provisions, no specific timeline has been established for their implementation.
Speaking from Taipei, Cheng explained that Taiwan has already negotiated protective measures through a bilateral trade agreement signed in January. Under this arrangement, the island nation secured most-favored-nation status for its semiconductor exports, ensuring preferential treatment even if future tariffs are imposed.
The January trade deal includes immediate benefits for Taiwan, with the U.S. eliminating or reducing certain tariffs to 15% on various Taiwanese products. These reductions cover automotive components, aircraft parts, wood products, and steel, according to Federal Register documentation. The tariff adjustments take effect retroactively from May 1 and were scheduled for official publication Thursday in U.S. time.
Cheng emphasized that Taiwan’s advance negotiations have locked in favorable terms regardless of when Section 232 semiconductor tariffs might be implemented. Section 232 refers to U.S. national security investigations targeting critical imports including computer chips and pharmaceutical products.
“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.,” Cheng stated.
The Vice Premier noted that these protective arrangements will remain in place despite ongoing U.S. discussions about potential semiconductor tariffs. She confirmed that American officials have repeatedly suggested such measures might be forthcoming, but emphasized Taiwan’s secured position through the January agreement.
Taiwan plays a crucial role in global semiconductor manufacturing and serves as headquarters for TSMC, the world’s largest contract chipmaker. TSMC is currently investing $165 billion to construct manufacturing facilities in Arizona.
