United States: ITA/USTR notice modifies Section 232 tariffs on Taiwan-Origin automobile parts, wood products, and aircraft components
Date of publication: June 15, 2026
What happened
On May 28, 2026, the International Trade Administration (ITA) and the Office of the United States Trade Representative (USTR) published a joint notice in the Federal Register implementing tariff-related terms of a Memorandum of Understanding (MOU) between the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (TECRO), signed January 15, 2026. The notice modifies the Harmonized Tariff Schedule of the United States (HTSUS) and is effective retroactively for goods entered for consumption on or after May 1, 2026.
The new HTSUS headings added are 9903.76.24, 9903.94.66, 9903.94.67, 9903.94.68, 9903.94.69, along with heading 9903.96.03 for aircraft components. The notice notes that the separately signed Agreement on Reciprocal Trade between AIT and TECRO (ART, signed February 12, 2026) is not being implemented at this time, as it has not yet entered into force.
Product Type | Tariff Cap |
|---|---|
Auto parts | Maximum 15% combined duty |
Wood products | Maximum 15% combined duty |
Aircraft components | No additional Section 232 steel, aluminum, or copper duties |
Why it matters for trade compliance teams
- Classification and duty calculation:This applies to importers of Taiwan-origin automobile parts, timber, lumber, wood derivatives, and civil aircraft components. Teams will want to verify HTSUS classification against the newly added chapter 99 headings.
- Retroactive effective date:The HTSUS modifications apply to entries on or after May 1, 2026 — predating the notice publication date of May 28, 2026.
- Foreign trade zone treatment:Automotive parts (except those eligible for admission under 'domestic status' as defined in 19 CFR 146.43) that are subject to these provisions that are admitted to a U.S. FTZ on or after May 1, 2026 must be admitted under privileged foreign status (19 CFR 146.41), not domestic status.
- Interaction with other duty programs:The notice states that antidumping, countervailing, and other applicable duties continue to apply, and that existing Chapter 98 provisions remain available subject to their standard terms.
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