Taipei: The recent ruling declaring President Donald Trump's "reciprocal" tariffs unconstitutional will not affect key favorable terms Taiwan obtained in a trade deal recently signed with the United States, Vice Premier Cheng Li-chiun said Tuesday. Cheng was referring to provisions in a Taiwan-U.S. investment memorandum of understanding (MOU) signed on Jan. 15 that gave Taiwan preferential treatment on potential tariffs imposed based on Section 232 investigations under the U.S. Trade Expansion Act.

According to Focus Taiwan, Cheng stated during a press conference that the Section 232 provisions will remain unchanged as the Supreme Court ruling did not pertain to those measures. The preferential conditions Taiwan secured include exemptions within quotas and most-favored nation treatment beyond quotas, which will continue to be upheld.

Cheng was addressing concerns regarding the impact of the U.S. Supreme Court ruling on Feb. 20, which invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA). These included the 15 percent baseline tariff, reduced from an original 20 percent, found in the agreement on reciprocal trade (ART) signed by Taiwan and the U.S. on Feb. 12.

The situation has left several countries in a similar predicament, having agreed to trade frameworks based on U.S. tariffs now ruled illegal. However, as of Tuesday, these countries were generally awaiting clarification from the U.S. before deciding whether to adhere to the negotiated deals.

Following the Supreme Court ruling, Trump invoked Section 122 of the Trade Act of 1974, initially imposing a global 10 percent tariff and subsequently adjusting it to a global 15 percent tariff a day later. His administration also hinted at potential use of Sections 301 and 232 for further punitive tariffs.

Cheng mentioned that Taiwan would await confirmation from the U.S. on the final details related to the MOU and ART before presenting them, along with an impact assessment, to the Legislative Yuan for review and approval. Taiwan has maintained communication with the U.S. since the Supreme Court ruling and was informed that the U.S. is still evaluating potential responses and will update Taipei and other trading partners once a decision is made.

In response to an inquiry from CNA, a White House spokesperson confirmed that the 15 percent tariff assessed under Section 122 authority was "temporary" as the Trump administration seeks alternatives. Trump still expects all countries to continue honoring their trade deal commitments on reducing trade barriers and other concessions, which remain unchanged.