US Tariffs on Taiwanese Imports 2026: Semiconductor Focus, Duty Rates & CHIPS Act Impact

Taiwan is the fourth-largest source of US imports and the undisputed global leader in advanced semiconductor manufacturing. In 2025, the United States imported over $85 billion in goods from Taiwan, with semiconductors and electronic components accounting for roughly half of that total. For importers, understanding the tariff landscape on Taiwanese goods is not just a compliance exercise -- it is a strategic necessity in an era where chip supply chains sit at the center of US trade and national security policy.

This guide breaks down every tariff that applies to Taiwanese imports in 2026, from MFN duty rates and the Section 122 surcharge to the potential impact of the CHIPS Act on future semiconductor duties.

Taiwan's Trade Relationship with the US

Taiwan occupies a unique position in US trade. It is one of America's largest trading partners, yet there is no comprehensive free trade agreement between the two. Diplomatic complexities related to the One China policy have historically prevented a formal FTA, though economic ties run deep.

Key facts about US-Taiwan trade:

• 4th largest US import source in 2025, behind China, Mexico, and Canada
• $85+ billion in annual imports to the US
• No free trade agreement -- all goods subject to MFN rates
• US-Taiwan Initiative on 21st-Century Trade signed in 2023, covering customs procedures and regulatory practices but not tariff reductions
• TSMC alone accounts for over 90% of the world's most advanced chip production

The absence of an FTA means Taiwanese goods face standard MFN duty rates -- the same rates applied to most World Trade Organization members. While this puts Taiwan at a disadvantage compared to FTA partners like South Korea (KORUS FTA), many of Taiwan's primary exports, especially semiconductors, already carry 0% MFN rates under the WTO's Information Technology Agreement (ITA).

Current Tariff Rates on Taiwanese Imports

After the Supreme Court struck down IEEPA tariffs in February 2026, the tariff regime on Taiwanese imports simplified considerably. Here is what applies today:

Semiconductors: The Dominant Import Category

Semiconductors are the story of US-Taiwan trade. Taiwan Semiconductor Manufacturing Company (TSMC) fabricates chips for Apple, NVIDIA, AMD, Qualcomm, and virtually every major technology company. When you look up tariffs on Taiwanese imports, you are largely looking at chip tariffs.

The good news for importers: most semiconductors enter the US at 0% MFN duty under the WTO Information Technology Agreement. The US joined the ITA in 1997, and it covers a broad range of IT products including integrated circuits, processors, memory chips, and discrete semiconductors.

Key HTS Codes for Taiwanese Semiconductors

While the MFN rate is zero, the Section 122 surcharge of 10% still applies. On a $500 million semiconductor shipment, that is $50 million in additional duties -- a meaningful cost that did not exist before 2026. Use Tariff Check to look up the exact rate for your specific HTS code.

The CHIPS Act and Its Impact on Taiwan Tariffs

The CHIPS and Science Act, signed into law in August 2022, represents the most significant US investment in domestic semiconductor manufacturing in decades. While it primarily operates through subsidies rather than tariffs, its implications for Taiwanese imports are substantial.

What the CHIPS Act Does

• $52.7 billion in subsidies for domestic semiconductor manufacturing and R&D
• 25% investment tax credit for semiconductor manufacturing equipment
• TSMC Arizona fabs: TSMC committed to building three fabrication plants in Arizona with $40+ billion in total investment, supported by $6.6 billion in CHIPS Act grants
• Guardrails: Companies receiving CHIPS funds cannot significantly expand advanced chip manufacturing in China for 10 years

Could Semiconductor Tariffs Come Next?

The CHIPS Act uses carrots (subsidies) rather than sticks (tariffs) to encourage domestic manufacturing. However, several policy proposals in 2025-2026 have floated the idea of imposing tariffs on imported semiconductors as an additional reshoring incentive.

For now, no semiconductor-specific tariffs have been enacted beyond the general Section 122 surcharge. But importers should monitor legislative developments closely, especially as the 150-day Section 122 clock ticks down and Congress debates what comes next. Read our semiconductor tariffs deep dive for more detail.

Other Key Import Categories from Taiwan

While semiconductors dominate, Taiwan exports a diverse range of products to the US. Here are the other major categories and their tariff treatment:

Section 122: The Temporary Surcharge

Following the Supreme Court ruling, the administration imposed a 10% surcharge on all imports under Section 122 of the Trade Act of 1974. For Taiwan, this replaced the much higher 32% IEEPA tariff.

Critical points for importers of Taiwanese goods:

• The 10% surcharge applies to all imports, including semiconductors that normally enter duty-free
• Section 122 tariffs are capped at 15% and expire after 150 days
• The clock started in late February 2026, meaning expiration comes in mid-to-late July 2026
• After expiration, rates revert to MFN-only unless Congress acts

Supply Chain Security and National Security Considerations

Taiwan's dominance in semiconductor manufacturing creates a unique tariff policy tension. On one hand, the US wants to reduce dependence on Taiwanese chip imports for national security reasons -- particularly given cross-strait tensions with China. On the other hand, imposing high tariffs on chips from Taiwan would immediately raise costs for every American technology company and consumer.

This is why policy has favored the CHIPS Act subsidy approach over tariffs. The goal is to build domestic capacity (TSMC Arizona, Intel, Samsung Texas) while keeping imports flowing until that capacity comes online. Most analysts expect this delicate balance to continue through at least 2028, when TSMC's first Arizona fab reaches full production.

Practical Tips for Importing from Taiwan

1. Verify your HTS classification. With semiconductors, the difference between HTS subheadings can mean the difference between 0% and a positive duty rate. Use Tariff Check to confirm your code before importing.
2. Track the Section 122 expiration. The current 10% surcharge is temporary. Plan your import timing around the expected July 2026 expiration date.
3. Claim IEEPA refunds. If you imported Taiwanese goods between April 2025 and February 2026 and paid IEEPA tariffs, you are entitled to refunds. File your claims with CBP promptly.
4. Monitor CHIPS Act developments. Any new semiconductor tariffs would disproportionately affect Taiwan-sourced chips. Stay current with our trade updates.
5. Consider the ITA. Many tech products qualify for 0% MFN duty under the WTO Information Technology Agreement. Ensure your classification takes advantage of ITA coverage.
6. Watch for Section 232 exposure. If you import steel or aluminum from Taiwan, the 25%/10% Section 232 tariffs apply on top of everything else.

How Taiwan Compares to Other Import Sources

Understanding Taiwan's tariff position relative to other major import sources helps with sourcing decisions:

Taiwan's tariff position is similar to Japan and the EU -- no FTA, standard MFN rates, plus the Section 122 surcharge. The key advantage is that Taiwan's dominant exports (semiconductors) happen to carry 0% MFN rates, making the effective tariff burden lower than countries that primarily export goods with positive duty rates.

Frequently Asked Questions

What tariffs does the US charge on Taiwanese imports in 2026?

Taiwan faces MFN (Most Favored Nation) duty rates on all imports since there is no US-Taiwan free trade agreement. Most electronics and semiconductors enter at 0% MFN duty. A Section 122 surcharge of 10% applies to all imports. Steel and aluminum face additional Section 232 tariffs of 25% and 10% respectively.

Are semiconductors from Taiwan tariff-free?

Most semiconductors classified under HTS 8541 and 8542 carry a 0% MFN duty rate under the WTO Information Technology Agreement. However, the Section 122 surcharge of 10% still applies to all imports regardless of MFN rate. On high-value semiconductor shipments, this surcharge represents a significant cost.

How does the CHIPS Act affect Taiwan tariffs?

The CHIPS and Science Act primarily uses subsidies ($52.7 billion) rather than tariffs to encourage domestic semiconductor production, including support for TSMC's Arizona fabs. While no chip-specific tariffs have been enacted, policymakers have discussed using tariffs on imported chips as an additional reshoring incentive, which could directly impact Taiwan's semiconductor exports to the US.

Does the US have a free trade agreement with Taiwan?

No. The US does not have a comprehensive free trade agreement with Taiwan. Diplomatic constraints related to the One China policy have historically complicated formal trade negotiations. The US-Taiwan Initiative on 21st-Century Trade, launched in 2022, covers customs procedures and regulatory practices but does not include tariff reductions.

What are the key HTS codes for Taiwanese semiconductor imports?

Key HTS codes include: 8541.10 (diodes), 8541.21 (transistors under 1W), 8542.31 (processors and controllers), 8542.32 (memories), 8542.33 (amplifiers), and 8542.39 (other integrated circuits). Most carry a 0% MFN duty rate but are subject to the Section 122 surcharge. Browse all codes in Chapter 85.