Taiwan's Executive Yuan confirmed that Taiwan and the United States have formally signed the agreement."Taiwan-US Reciprocal Trade Agreement"Among the most anticipated changes is the reduction of tariffs on US-spec passenger cars to zero. However, in response to this favorable policy, Tesla Taiwan issued a statement clarifying that prices for models currently imported from the US will not be reduced until government regulations and certification systems become clearer.
Taiwan-US zero-tariff agreement: passenger cars are exempt from tariffs, but there are still hurdles ahead.
According to the Executive Yuan's announcement, after the signing of the reciprocal trade agreement between Taiwan and the United States, "US-standard passenger cars" that meet the US Federal Motor Vehicle Safety Standards (FMVSS) will enjoy zero-tariff treatment and import quantity restrictions will be lifted. However, small and medium-sized trucks will maintain certain tariffs to ensure the resilience of the military industry.
However, this does not mean that American cars can be sold at a discount immediately. The Executive Yuan emphasized that vehicles imported into Taiwan in accordance with US standards still need to apply for certificates of conformity from the Ministry of Transportation and Communications, the Ministry of Economic Affairs, and the Ministry of Environment regarding energy consumption, pollution, and noise, and must pass inspection by the vehicle testing center. The government will also establish a post-market audit and supervision system within six months of the agreement taking effect.
Tesla Taiwan's stance: No price reductions at this stage, and no relocation of German-made Model Y production.
Tesla Taiwan has given a relatively conservative response to the zero-tariff policy. The company stated that the effective date of the regulations and the establishment of the vehicle testing center certification system are not yet finalized. A more pressing issue is that with the continued rise in the costs of automotive raw materials and international transportation, tariff reductions are not the sole factor in pricing.
Therefore, there are currently no plans to adjust prices for Model 3, Model S, and Model X manufactured in the United States.
Regarding speculation that Tesla might move Model Y production, currently manufactured at its Berlin factory, back to the United States to take advantage of zero tariffs, Tesla Taiwan denied this, stating that considering the changes in the importing country and recertification involved in production relocation, there are currently no plans for production line adjustments or relocation.
Reaffirming that Model S and Model X production will cease in the second quarter.
In contrast to the tariff issue, Tesla reiterated its strategic focus on the global market's move towards Full Self-Driving (FSD) and AI-powered humanoid robots, particularly its flagship Model S and Model X models.Production will cease globally in the second quarter of 2026.In the future, the production capacity and resources of these two models will be fully invested in the production of Optimus humanoid robots.
For current owners, Tesla promises to continue providing comprehensive after-sales service, including vehicle warranty, technical support, and over-the-air (OTA) software updates for the entire vehicle lineup.
