As the U.S. government moves in earnest to introduce a "semiconductor tariff," tension is rising in Korea's industrial sector. U.S. President Donald Trump on the 14th local time signed a proclamation to impose additional tariffs on certain artificial intelligence (AI) semiconductors. U.S. Commerce Minister Howard Lutnick also recently pressed for investment in the United States and mentioned a "100% semiconductor tariff."
In response, the government on the 18th said it "will hold consultations to minimize the impact on Korean corporations in line with the principle of 'no less favorable treatment' agreed between Korea and the United States." Through trade talks including last year's reciprocal tariff discussions, Korea received a pledge from the United States of most-favored-nation treatment on semiconductor tariffs. The presidential office has been briefed by the Ministry of Trade, Industry and Resources and other related ministries on the U.S. semiconductor tariffs and is responding by gathering opinions from corporations.
President Trump, shortly after taking office early last year, said he would impose reciprocal tariffs on major trading partners. He later secured pledges for investment in the United States through tariff negotiations. Although he announced in Aug. last year that tariffs would be imposed on semiconductors, they have not been applied across the board until recently.
The semiconductor proclamation Trump recently signed states that a 25% tariff will be imposed if certain semiconductors or derivative products imported into the United States do not contribute to building the U.S. technology supply chain or strengthening manufacturing capabilities. The government and industry said that because the measure primarily targets China, the direct impact on the domestic industry would likely be limited. Still, some noted that the U.S. semiconductor tariff rollout is effectively moving into full swing, calling for a response.
The White House, in a fact sheet, said, "President Trump may, in the near future, impose broader tariffs on imports of semiconductors and their derivatives to induce manufacturing in the United States, and may introduce a corresponding tariff offset program," signaling a "second-stage measure."
The United States and Taiwan concluded tariff negotiations on the 15th, the day after the "semiconductor proclamation" was signed, agreeing to lower the reciprocal tariff rate on Taiwan from the existing 20% to 15% in exchange for Taiwanese corporations and the government providing $250 billion each in investment and credit guarantees in the United States.
The Trump administration decided that for Taiwanese corporations establishing semiconductor production capacity in the United States, tariffs will be waived on imports up to 2.5 times the production capacity while facility construction is underway, and for those completing new semiconductor production facilities, imports up to 1.5 times the new production capacity can be brought in without paying tariffs. In addition, TSMC has completed or plans to expand six semiconductor plants in Arizona, and it is known to have decided to add five more semiconductor plants.
Samsung Electronics and SK hynix are building plants in the United States, but there is a possibility they will be asked to make additional investments to maintain duty-free benefits going forward. Samsung Electronics revised its plan to invest $17 billion in Taylor, Texas, by 2030, expanding its total investment in the United States to $37 billion. SK hynix has also released plans to invest $3.87 billion in Indiana to build an advanced packaging production base for AI memory.