The U.S. Supreme Court is expected to rule on the legality of President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose “reciprocal tariffs.” There is widespread concern about whether Taiwan-U.S. tariff negotiations would lose their significance if reciprocal tariffs are deemed illegal. Da-Nien Liu, Director of the Regional Development Study Center at the Chung-Hua Institution for Economic Research (CIER), points out that even if the ruling is unfavorable to reciprocal tariffs, Taiwan-U.S. negotiations would not be in vain, as the key issue is whether the United States turns to other tariff tools.
Director Da-Nien Liu stated that the court’s focus is on whether the president exceeded his authority, and the outcome of the ruling remains highly uncertain. It may involve whether to cease implementation in the future or how to handle tariffs already imposed. However, for Taiwan, the real focus is not limited to reciprocal tariffs alone, but rather whether the United States further activates Section 232 of the Trade Expansion Act. This provision grants the president authority to directly impose taxes in the name of national security and is unaffected by this case.
Sections 232 and 301 Become Key to U.S. Tariff Policy
Director Da-Nien Liu analyzed that if reciprocal tariffs are restricted, the United States is highly likely to increase its use of Section 232 in combination with tools such as Section 301 of the Trade Act to restructure its overall tariff policy framework. Although the process would be more time-consuming, the direction is clear.
In addition, the focus of U.S. negotiations in recent years has shifted from market opening to attracting investment, especially in high-tech industries. Taiwan holds a critical position in the semiconductor sector, and future investment layouts in the United States must be carefully evaluated to ensure that core technologies and industrial foundations remain in Taiwan while balancing overall national interests.
Regardless of the U.S. Supreme Court’s ruling, U.S. tariff policy is bound to enter an adjustment period. Taiwan needs to maintain policy flexibility, continue monitoring U.S. developments, and steadily advance negotiations with the United States.
Author: CIER Editorial Team
Date: January 15, 2026