The U.S. recently announced the application of Section 232 tariff concessions to certain non-semiconductor products from Taiwan, including auto parts, select timber products, as well as steel, aluminum, and copper derivatives used in aerospace components. Under the measures, auto parts and timber products will be subject to a 15% concessionary tariff rate, on par with Japan, South Korea, and the European Union. Meanwhile, the tariff rate for specific aerospace components was slashed from 15% to 1.12%, with the preferential measures applying retroactively starting May 1, 2026.
Section 301 Probe Launched on the Heels of Section 232 Concessions
However, the Office of the U.S. Trade Representative (USTR) subsequently released its “Section 301 Forced Labor Investigation Report,” which covers approximately 60 economies, including Taiwan. Fourteen of these economies have been recommended to face a 10% tariff. Because these measures have not yet been formally promulgated, further developments remain to be seen.
In response, Hsien-Ming Lien, President of the Chung-Hua Institution for Economic Research (CIER), analyzed that the simultaneous rollout of Section 232 concessions and the Section 301 investigation reflects Washington’s diversified trade policy strategy. The primary driver is that the 10% global tariff currently imposed under Section 122 of the Trade Act of 1974 can legally remain in effect for only 150 days without congressional approval. As it is slated to expire by late July, the U.S. must seek new legal mechanisms to anchor its future tariff policies.
With Section 122 Expiration Looming, U.S. Seeks New Legal Foundation
Lien pointed out that compared to Section 122, Section 301 not only offers greater flexibility in its duration of application but also lacks a definitive tariff ceiling. This affords the U.S. government broader policy maneuvering room to adjust tariff levels on imports based on individual country circumstances.
In addition, the U.S. has recently launched investigations into “overcapacity” issues to examine whether various countries are distorting global market competition through industrial subsidies or policy measures. Taiwan, alongside China, Japan, South Korea, and the EU, is a subject of these investigations. The forthcoming results will likely serve as a crucial reference for future trade policies.
Lien believes that Washington’s previous extension of tariff concessions on Taiwan’s non-semiconductor products suggests that ongoing bilateral trade negotiations are progressing. Given recent developments, it is highly likely that the U.S. will prioritize upholding the achievements of existing agreements while using the Section 301 investigation to maintain flexibility for future policy adjustments. This approach will ensure that relevant trade arrangements are effectively implemented.
Overall, the Section 301 probe currently carries more significance as an institutional and policy instrument, with limited short-term impact on existing U.S.-Taiwan preferential measures. However, the actions of the U.S. Congress, the executive branch, and the ensuing investigation results warrant continuous monitoring for their potential ripple effects on the global trade landscape.
Author: CIER Editorial Team
Date: June 8, 2026