US Launches Section 301 Probe Into Taiwan, Threatening Semiconductor and ICT Supply Chains With Tariffs

Section 301 of the Trade Act of 1974 authorizes the Office of the US Trade Representative, or USTR, to investigate unreasonable or discriminatory trade practices and impose tariffs in response. Taiwan’s exports to the United States are dominated by semiconductors, servers and other information and communications technology products. If Taiwan is found to have excess capacity, higher export costs and disruptions to the configuration of AI hardware supply chains could follow.

On March 11, 2026, USTR launched investigations into 16 economies, including Taiwan, China, the European Union, Japan and South Korea. It identified 21 priority industries, including semiconductors, electronics and solar modules, and said Taiwan recorded a $73.3 billion goods trade surplus in 2024. Public hearings were held from May 5 to May 8, but no tariff rates have yet been announced.