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US tariff reduction on Taiwan boosts auto parts sector's export competitiveness

20 Jan 2026 16:20 reported by Ocean Qu

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The US has reduced its reciprocal tariff rate on Taiwan to 15% without additional overlapping duties. Notably, Taiwan has also secured the most favorable treatment for certain products under Section 232, including auto parts, with a tariff cap not exceeding 15%.

Major auto parts supplier Tong Yang Group stated that this development benefits Taiwan's auto parts industry, enhancing its export competitiveness. Previously, many auto parts faced a combined duty of around 27.5% when exported to the US. Now aligned with the 15% rate applied to competitors like Japan and South Korea, Taiwan's position is significantly strengthened.

Beyond auto parts, Taiwan obtained optimal Section 232 terms for items such as wood products and certain aerospace components. Additionally, both sides agreed to establish a consultation mechanism for potential future 232 investigations.

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