Tariffs & HTS
U.S. caps Section 232 duties on Taiwan auto parts and wood at 15%
Commerce and USTR amended the HTSUS to implement tariff terms of the January 15, 2026 Taiwan–U.S. investment MOU signed by AIT and TECRO. Section 232 duties on certain Taiwanese auto parts, timber, lumber and wood derivative products are capped at 15% including the Column 1 rate, and derivative steel, aluminum and copper duties no longer apply to Taiwanese civil aircraft components. The changes apply to entries from May 1, 2026.
What changed
Where a product's Column 1 rate is at least 15%, no Section 232 duty applies; where it is lower, the Column 1 rate plus the Section 232 duty equals 15%. New headings 9903.94.66 to 9903.94.69 cover Taiwanese passenger vehicle and light truck parts, and heading 9903.76.24 covers Taiwanese wood products at 15%.
Covered auto parts are not also charged the steel, aluminum, copper or wood product duties listed in the note. The aircraft exemption (heading 9903.96.03) covers listed HTSUS provisions and excludes military and unmanned aircraft.
The notice took effect May 28, 2026 but applies to entries from 12:01 a.m. ET May 1, 2026; refunds follow applicable law and CBP's standard procedures. AD/CVD still apply, and the February 12, 2026 trade agreement (ART) was not implemented because it had not entered into force.
What an import team should check
- List the Taiwanese auto parts and wood products you import and check whether each Column 1 rate is below or at least 15%, which decides the new heading that applies.
- Identify entries of covered Taiwanese goods made on or after May 1, 2026 and ask your broker how to seek any refund through CBP's standard procedures.
- Check whether Taiwanese civil aircraft components you import are in the HTSUS provisions listed for heading 9903.96.03 and meet General Note 6.