U.S. President Donald Trump calls himself “Mister Tariff” and “The Tariff King” in social media posts, Friday (native time). Captured from Trump’s Reality Social account
The federal government has been scrambling to calm issues that Korean chipmakers might face unfavorable remedy below the U.S. semiconductor tariffs, as their Taiwanese rivals have already gained exemptions in return for enormous investments in the US.
Citing Washington’s pledge of “no much less favorable” remedy for Korea’s chip exports, Seoul’s presidential workplace vowed Sunday to make sure Samsung Electronics and SK hynix will not be deprived towards Taiwan Semiconductor Manufacturing Co. (TSMC) within the U.S. market.
“The federal government plans to speak with corporations and discuss with the U.S., whereas totally analyzing the settlement between the U.S. and Taiwan,” Cheong Wa Dae instructed reporters.
“The federal government will discuss with the U.S. to reduce impacts on Korean corporations, in accordance with the precept of ‘no much less favorable’ remedy acknowledged within the Korea-U.S. joint truth sheet.”
When Seoul and Washington signed the actual fact sheet final November to decrease U.S. tariffs on Korean items from 25 % to fifteen % in trade for Korea’s $350 billion funding within the U.S., Seoul was assured it could not be handled much less favorably than different nations on chip tariffs, although the semiconductor tariff price was left undecided.
“For any Part 232 tariffs imposed on semiconductors (together with semiconductor manufacturing tools), the US intends to supply phrases for such Part 232 tariffs on Korea which are no much less favorable than phrases which may be provided in a future settlement overlaying a quantity of semiconductor commerce at the least as massive as Korea’s, as decided by the US,” the actual fact sheet reads.
U.S. President Donald Trump speaks as C.C. Wei, proper, chairman and CEO of Taiwan Semiconductor Manufacturing Co., and U.S. Commerce Secretary Howard Lutnick pay attention within the Roosevelt Room of the White Home in Washington, March 3, 2025. AP-Yonhap
Nevertheless, it has change into unsure whether or not the U.S. will preserve Korea’s most-favored-nation standing on chip exports, particularly after an official from the Donald Trump authorities signaled that his administration needs “separate agreements for separate nations” on semiconductor tariffs.
Even when the U.S. treats Korea the identical as Taiwan, it’s troublesome for Korean chipmakers to make extra large-scale investments within the U.S., not like their Taiwanese rivals that plan to take a position at the least $250 billion in U.S. manufacturing capability. The Taiwanese authorities has additionally pledged $250 billion in credit score assist for its companies.
Samsung is investing $37 billion in a wafer fabrication plant below development in Texas, whereas SK is spending $3.87 billion on a sophisticated chip packaging facility in Indiana. Each corporations are additionally constructing a large semiconductor cluster in Korea.
Moreover, $150 billion of the $350 billion that Seoul dedicated to investing within the U.S. is designated for shipbuilding cooperation. Deputy Prime Minister and Finance Minister Koo Yun-cheol additionally stated Friday that the weak gained has made it troublesome to start the U.S. investments throughout the first half of this 12 months.
Regardless of these challenges, Samsung and SK face rising stress from Washington to affix TSMC in promising huge U.S. investments. The Trump administration has threatened steep tariffs on reminiscence chips, not solely on superior ones already topic to the 25 % responsibility.
On Friday (native time), sooner or later after Taiwan secured its U.S. tariff exemption in trade for TSMC’s manufacturing facility development in Arizona, U.S. Commerce Secretary Howard Lutnick instructed reporters that tariffs might attain as much as 100% except chipmakers broaden manufacturing within the U.S.
“Everybody who needs to construct reminiscence has two decisions: They will pay a 100% tariff, or they will construct in America,” Lutnick stated on the groundbreaking ceremony for Micron Expertise’s new plant in Syracuse, New York.
Though Lutnick didn’t single out any particular nations or corporations, his feedback have been broadly seen as a name for extra U.S. funding from Samsung and SK, which lead the worldwide reminiscence market.
When Washington enacted a brand new 25 % tariff Wednesday (native time) on Nvidia’s H200 synthetic intelligence accelerators and different superior chips, Seoul initially anticipated restricted affect, since Korean exports to the U.S. are centered on reminiscence merchandise.
“The primary-stage measure introduced is targeted on superior chips from Nvidia and AMD, and excludes reminiscence chips, that are key export merchandise of native corporations,” Commerce Minister Yeo Han-koo instructed reporters Saturday at Incheon Worldwide Airport after a weeklong go to to Washington.
