Taiwanese exporters cannot claim US tariff exemptions for goods made with American technology, according to Taiwan’s Office of Trade Negotiations.

The new US tariffs, effective Apr. 9, impose duties of 32% on Taiwanese goods and 34% on Chinese goods as part of broader trade actions.

Under the US content rule, products with at least 20% of their content made in the US may qualify for partial tariff exemptions.

For hardware components, Taiwanese exporters must provide documentation proving the American origin of parts to qualify for exemptions.

Even if a product meets the 20% threshold, the remaining foreign-made value is still subject to tariffs.

Final decisions on content qualification and tariff duties will be determined by US Customs.

🔗 Source: Focus Taiwan

🧠 Food for thought

1️⃣ Semiconductor exemptions create uneven impact despite headlines

The 32% tariff on Taiwanese goods has caused significant market reactions, with TSMC shares dropping 7% following the announcement, yet the semiconductors that form the backbone of Taiwan’s exports are specifically exempted from these tariffs 1.

This creates a complex economic landscape where Taiwan’s most strategic industry remains protected while other sectors face substantial headwinds from the tariffs.

The exemption highlights the critical importance of Taiwan’s semiconductor industry, which produces over 60% of the world’s chips and 90% of the most advanced ones, making it virtually irreplaceable in global technology supply chains 2.

However, analysts warn that the narrow exemption for semiconductors doesn’t alleviate the entire burden, as many chips arrive in the US packaged in products that are subject to tariffs, potentially raising costs throughout the technology ecosystem 3.

The situation illustrates how modern trade policies must navigate the reality of deeply integrated global supply chains, where components cross multiple borders before reaching end consumers.

2️⃣ Taiwan’s proactive economic diplomacy shows evolving response to tariff pressures

Taiwan’s government has rapidly developed a multi-faceted response to the tariffs, including assistance programs for companies looking to relocate to the US and promoting R&D cooperation between Taiwanese and American firms 4.