The U.S. will reduce Section 232 tariffs on Taiwanese auto parts and certain wood products, while fully eliminating tariffs on aerospace goods. These changes are retroactive to May 1. A Federal Register notice scheduled for May 28 contains a detailed annex of Harmonized Tariff Schedule updates. For products previously subject to 25% Section 232 duties (e.g., furniture, cabinets, and auto parts), the new all-in rate will be 15%, inclusive of MFN duties. In addition, any overlapping Section 232 duties on aluminum, steel, or copper components in auto parts will no longer apply.

Refunds will be available for duties paid on eligible entries dated on or after May 1 via Post Summary Correction process. According to the notice, the tariff relief reflects Taiwan’s commitment to invest in the U.S., which is expected to support domestic construction and increase demand for U.S.-produced steel, aluminum, copper, and wood. The policy also aims to strengthen semiconductor supply chains through expanded U.S.-based production by Taiwanese firms, reducing disruption risk for auto manufacturers and supporting stable auto parts production.

For more information, refer to CBP CSMS #68762890.

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