US Tariffs on Imports from Taiwan

Taiwan received significant tariff relief from the SCOTUS ruling — its rate dropped from 32% (IEEPA) to 10% (Section 122), a 22-point reduction. However, since semiconductors (Taiwan's dominant export) already enter at 0% MFN, the practical impact on most Taiwanese trade is more modest than the headline number suggests.

There is no FTA between the US and Taiwan, though a US-Taiwan Initiative on 21st-Century Trade was launched in 2022 to deepen economic ties. Taiwan is the world's leading producer of advanced semiconductors (TSMC accounts for over 50% of global foundry revenue). The strategic importance of Taiwan's semiconductor industry has made it a focal point of US industrial policy, including the CHIPS Act incentives for TSMC's Arizona fabs.

Key Products Imported from Taiwan

Top imports include semiconductors and integrated circuits, flat panel displays, computer components, machinery, optical instruments, and bicycle parts. Semiconductors alone account for a majority of Taiwan's exports to the US, making the trade relationship heavily concentrated in a single sector.

Recent Changes

Feb 20, 2026: SCOTUS struck down IEEPA tariffs — Taiwan's rate dropped from 32% to 10% Section 122 (expires ~July 24, 2026). A 22-point reduction, but semiconductors (the dominant export) already enter at 0% MFN. TSMC's Arizona fab is operational, shifting some leading-edge production to the US. The US-Taiwan 21st-Century Trade Initiative continues advancing on customs and regulatory provisions.

Tips for Importers

Semiconductors and most electronic components from Taiwan enter at 0% MFN duty, so the Section 122 tariff is the only layer — and it dropped from 32% to 10%. For non-semiconductor products (machinery, bicycles, metals), the 22-point reduction is dramatic and makes Taiwanese goods substantially more competitive. No FTA means no preferential treatment, so accurate HTS classification is essential. TSMC's US production provides a domestic alternative for leading-edge chips.