Commerce and USTR Implement Section 232 Relief for Taiwan

May 27, 2026
By: Austin J. Eighan

On May 28, the Department of Commerce and the Office of the U.S. Trade Representative plan to release a Federal Register Notice implementing Section 232 tariff reductions for automobile parts, timber, lumber, and wood derivative products of Taiwan. The Notice amends the Harmonized Tariff Schedule to align with the January 2026 Memorandum of Understanding (MOU) between the United States and Taiwan. The MOU secured lower duty rates in exchange for up to $250 billion of Taiwanese investment to “build and expand advanced semiconductor, energy, and artificial intelligence production and innovation capacity in the United States.”

The Notice implements the tariff commitments by establishing a cap for the combined Section 232 and most favored nation (MFN) duty rates at 15% covering these products of Taiwan. Consistent with the MOU, the U.S. will also no longer impose derivative Section 232 steel, aluminum, and copper tariffs to Taiwanese aircraft components. The tariff changes apply to entries made on or after May 1 and are retroactive. As such, importers who paid excess duties on applicable merchandise may request refunds from U.S. Customs and Border Protection via post-summary correction or administrative protest.

If your company would like support in identifying how this tariff relief impacts your supply chain or would like assistance in requesting duty refunds, please reach out to one of our attorneys at Barnes, Richardson & Colburn.