US President Donald Trump has announced that 22 countries have received tax letters. Currently, there is no Taiwan in the list, but it has entered the downward stage. Among the actual taxes, Taiwan's US imports only 20% of the US imports, covering ICT products such as semiconductors and servers. The US 232 Terms, which accounts for 80% of Taiwan's US imports, has been hit even bigger
What is "U.S. Terms 232"?
There are five tax measures currently implemented by the United States, including basic tax, fentanyl tax (IEEPA Tariff), Term 232, Term 301 and tax-related taxes. Taxes are tax rewards that Taiwan is waiting for, and Term 232 is a tax-related tax-related tactics called national security in accordance with Article 232 of the Trade Extension Act.
Importance of "U.S. Terms 232"?The United States Terms 232 measures are used to investigate and determine whether import of a specific product affects national security. The investigation mechanism is the U.S. Department of Commerce Industry and Security Bureau. As long as it is determined that imported products cause U.S. national security threats, the U.S. President has the discretion to take adjustment measures for importing the product, including raising taxes, setting allocations or adopting other non-trade measures.
Items of "U.S. Terms 232"?The US Terms and Conditions currently cover six major categories including steel iron and aluminum, automobiles and parts, semiconductors, medicines, key minerals, and cargoes. Among them, Trump had already increased the tax rate for steel iron and aluminum to 50% on June 4. Recently, he officially announced that he would increase the tax rate for key minerals "copper" to 50% on August 1, and even said that he would charge 200% of the tax on imported medicine courses, showing the importance of the 232 clause.
Based on the figures of Taiwan's exports to the United States, in 2024, Taiwan's exports to the United States reached US$111.4 billion, accounting for 23% of exports, of which electronic information exports accounted for 71%, other traditional industries accounted for about 29%, and the proportion of tax-related products to the United States exports was 20%, while the United States' 232-term products accounted for 78%.
The proportion of details of "US 232"?Observation: In 2024, Taiwan’s top five products accounted for, first, computers, servers and other accessories accounted for 22.1%, then computers accounted for 21.2%, third, overall circuits accounted for 9.6%, fourth, network equipment accounted for 6.1%, and fifth, storage media accounted for 3.1%, all of which are included in the "US 232 Terms".
Why did the United States Terms 232 affect Taiwan?Currently, Taiwan and the United States are in a debate. According to the taxes under the United States Term 232, the taxes account for 80% of Taiwan's US products, covering semiconductors and servers, is expected to become one of the means of the US to impose pressure. However, the SEMI International Semiconductor Industry Association recommends promoting the cooperation model of "friendly strait outsourcing" and deepening partnerships with similar ideas, which will help establish a global supply chain with a specific and trust basis.
Extended reading: Trump's second wave of tax list is complete and eight countries are coming! Brazil increased from 10% to 50% reason exposed Taiwan has not yet made the list! US President Trump announces new round of Philippine 20% tax list More than 100 countries around the world have no talks about taxes! Trump bluntly said, "The United States can do whatever it wants."