The global 10% tariff implemented by the U.S. under Section 122 of the Trade Act was on the eve of expiration. The U.S. recently announced the invocation of Section 301 of the Trade Act of 1974 starting on the 24th. This imposes tariffs ranging from 10% to 12.5% on 60 trading partners. Taiwan is subject to a 10% rate. Da-Nien Liu, Director of the Regional Development Study Center at the Chung-Hua Institution for Economic Research (CIER), stated that the Trump administration’s tariff policy appears chaotic on the surface. Its core strategic objectives remain clear in reality. The U.S. leverages tariffs as a bargaining chip. This successfully compels countries such as Japan, South Korea, and Taiwan to increase their U.S. investments and procurement. The preliminary U.S. policy goals are gradually being achieved.
Director Liu pointed out that the Trump administration has frequently adjusted tariff measures over the past year. The rates shifted from initially announced high levels to a baseline of around 10% for most countries today. This indicates that tariffs are not the ultimate goal. The U.S. instead uses them as negotiation tools. It demands countries increase investments in the U.S., expand procurement, and comply with other U.S. policy requirements.
Director Liu stated that the U.S. shifted to levying tariffs under Section 301. The actual tax rates show no significant difference from previous ones. This move primarily bridges existing measures to prevent a tariff window gap. Overall, the applicable rates for various countries have dropped significantly compared to the April announcements last year. This reflects that the U.S. has extracted concessions from various countries via tariffs following a series of negotiations.
Taiwan is subject to a 10% tariff rate. This maintains a similar level to its major competitors. Director Liu believes the impact on Taiwan’s industries remains relatively limited. However, the narrowing tariff gap among countries implies converging competitive conditions. Taiwan must continue monitoring subsequent U.S. tariff policies and related negotiation progress.
However, Director Liu also cautioned that these tax rates are levied on the grounds of ineffective enforcement against “forced labor.” The investigation results regarding “excess capacity” have not yet been announced. Taiwan remains on the investigation list and requires continuous monitoring.
In addition, the U.S. has conducted national security investigations into industries such as semiconductors under Section 232 of the Trade Expansion Act. The final measures for these remain unannounced. Policy uncertainty consequently persists in the future. Director Liu believes the delayed U.S. announcement of these results reflects the Trump administration’s strategy. It retains tariffs as tools for subsequent negotiations to continuously demand increased investments and procurement from various countries.
Source: Economic Daily News (July 27, 2026). U.S. Section 301 Tariffs Replace Section 122 with 10% Rate for Taiwan; Da-Nien Liu: Tariffs Are Not Done with Two Investigations Unannounced. Economic Daily News. https://money.udn.com/money/story/7307/9648432