US 301 Tariff Investigation Results Imminent: Taiwan's Executive Yuan Pledges to Secure Preferential Treatment

The temporary tariff under Section 122 of the US Trade Act of 1974 is set to expire, raising speculation over whether the US will shift to Section 301 for future tariff policy. Li Hui-chih, spokesperson for Taiwan's Executive Yuan, stated at a press conference after the Executive Yuan meeting on the 23rd that Taiwan and the United States have maintained close communication, with bilateral discussions progressing “in a positive direction.” The government will ensure that Taiwan receives relatively preferential treatment when the US finalizes its tariff rates.

Following the expiration of the legal basis for US reciprocal tariffs, the US imposed a temporary 10% tariff on all countries under Section 122, in addition to existing Most Favored Nation (MFN) tariffs, effective until July 24. To rebuild the legal foundation for tariffs, the US has launched investigations under Section 301, focusing on two major issues: forced labor and structural overcapacity.

The Office of the United States Trade Representative (USTR) has already released a report on the “ban on imports of goods produced by forced labor,” recommending additional tariffs of 10% or 12.5% on 60 economies. Taiwan is among the 14 economies recommended for a 10% tariff. However, the investigation results related to structural overcapacity have not yet been released, and the final tariff rates await comprehensive decisions from the US.

Li Hui-chih noted that the government has been actively responding to the Section 301 investigations initiated by the US over recent months, with close coordination maintained between Taiwan and the US. She indicated that both Section 301 investigations are widely seen as procedural steps by the US to replace the legal basis for its tariff policy. Should the US announce any new tariff policies, the government will promptly provide public explanations.

Citing remarks by US Trade Representative Jamieson Greer, Li emphasized that the US will consider trade agreements already reached with various countries when determining tariffs. She stressed that Taiwan will continue close communication with the US to “ensure that relatively preferential treatment is granted to our country when the US makes final tariff decisions,” fully reflecting the outcomes of existing Taiwan-US negotiations and safeguarding Taiwan’s national and industrial interests.

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