In an update posted on January 15, 2026, the U.S. Department of Commerce announced a new trade agreement between the United States and Taiwan.
In exchange for future investments in semiconductor and technology products, the United States will be lowering the following tariff rates for Taiwanese goods:
- The International Emergency Economic Powers Act (IEEPA) reciprocal tariffs will total no more than 15%.
- Section 232 duties on auto parts, timber, lumber, and derivative wood products will total no more than 15%.
- A 0% reciprocal tariff for “generic pharmaceuticals, their generic ingredients, aircraft components, and unavailable natural resources.”
- Taiwanese companies that build new U.S. semiconductor or new chip production products will get additional capacity to import without paying Section 232 duties.
No date for when this trade agreement and its lowered tariff rates will go into effect have been provided.
The Department of Commerce’s Fact Sheet on the U.S.-Taiwan Trade Deal can be found here:
https://www.commerce.gov/news/fact-sheets/2026/01/fact-sheet-restoring-american-semiconductor-manufacturing-leadership
