Collision repair shops that source aftermarket parts from Taiwan could see some cost relief after the U.S. capped Section 232 tariffs on Taiwanese automobile parts at 15%, down from an average 26.71%.
The U.S. Department of Commerce and the Office of the U.S. Trade Representative published a notice May 28 capping Section 232 tariffs on Taiwanese automobile parts at 15%. The cap limits how much Taiwan-sourced aftermarket parts can cost when they enter the U.S. market.
Taiwan is a significant source of aftermarket replacement parts used in collision repair, including bumper covers, lighting assemblies, and sheet metal components. Section 232 tariffs on auto parts have been a contributing factor in collision repair parts pricing since they were applied beginning in April 2025, as previously covered in January and February.
The cap took effect retroactively, applying to goods entered for consumption on or after 12:01 a.m. Eastern time on May 1, 2026.
Taiwan is the first country to secure preferential treatment under the current administration's Section 232 tariff framework, according to the Formosan Association for Public Affairs, a Washington-based nonprofit.
How the Cap Is Calculated
The Federal Register notice establishes the cap through a two-part mechanism. For Taiwanese auto parts with a standard U.S. Column 1 duty rate at or above 15%, no additional Section 232 tariff will apply.
For parts with a Column 1 rate below 15%, the combined Column 1 rate and Section 232 surcharge will be capped so the total does not exceed 15%, according to trade compliance firm GHY International.
Before the cap, Taiwan-made auto parts were subject to an average combined rate of 26.71%, according to Taiwan's Central News Agency, citing the U.S. Trade Representative's office directly. The 15% rate puts Taiwan on par with the treatment already extended to the European Union, Japan, and South Korea under the same Section 232 framework, according to Focus Taiwan.
Filing and Compliance Details
For importers, the Federal Register notice establishes new Harmonized Tariff Schedule of the United States subheadings for affected Taiwanese auto parts: 9903.94.66 through 9903.94.69.
Importers may self-certify that parts qualify for preferential treatment when used in U.S. automobile production or repair activity, according to GHY International. Retroactive relief is available through post-summary correction filings with U.S. Customs and Border Protection for goods entered for consumption on or after May 1.
