[Editorial] One tariff after one other

Kim Seong-yeol, the pinnacle of the Ministry of Commerce, Business and Sources’ Workplace of Industries and Enterprises, chairs an emergency assembly of a joint private-public activity pressure for responding to US sectoral tariffs on semiconductors on Jan. 15, 2026. (Yonhap)

The US has hinted that it means to introduce sectoral tariffs on semiconductors, an concept that has been deferred till now. Final 12 months, Korea carried out bruising negotiations with the US to safe decrease reciprocal tariffs and tariffs on cars. Now, simply two months later, it faces one other uphill battle on semiconductor tariffs.

Whereas attending a groundbreaking for a brand new manufacturing unit by chipmaker Micron on Friday, US Commerce Secretary Howard Lutnick stated that anyone making reminiscence chips had a option to make: “They’ll pay a 100% tariff, or they’ll construct in America.”

The US’ transfer towards chip tariffs got here after Trump signed a proclamation on Wednesday imposing a 25% tariff on semiconductors which might be first imported to the US after which re-exported to China.

By itself, this measure will solely have a restricted influence on Korean corporations. However the White Home stated in a associated reality sheet that “within the close to future, President Trump could impose broader tariffs on imports of semiconductors [. . .] to incentivize home manufacturing.”

The US and Taiwan concluded their tariff negotiations on Thursday, in the future after this proclamation was introduced. For any Taiwanese corporations that construct new semiconductor fabrication vegetation, or “fabs,” on American soil, the US promised to waive tariffs on chips equal to 250% of the fabs’ manufacturing capability throughout building and 150% of their capability after completion.

Underneath this settlement, Taiwanese chipmaker TSMC introduced plans to construct no less than 4 extra fabs within the US together with six already within the works.

In Korea’s tariff negotiations with the US final 12 months, the US promised to not impose semiconductor tariffs on Korea which might be much less favorable than these on rival international locations equivalent to Taiwan.

Whereas Korea’s business was relieved on the time by this “most favored nation” assure, there are actually rising considerations that the end result of the US-Taiwan negotiations might be used as leverage in opposition to Korea.

Samsung Electronics is at the moment constructing a US$37 billion fab within the US, and SK Hynix is constructing a US$3.8 billion packaging plant. However these two corporations’ investments are a lot smaller than TSMC’s, and the US may properly demand that they enhance their home investments.

Given the excessive demand for reminiscence chips amid the present increase in synthetic intelligence and the truth that the US solely receives 7.7% of Korea’s chip exports, Korea just isn’t at a severe drawback within the negotiations.

For the reason that US’ place stays unclear, this isn’t the stage to be discussing a concrete motion plan. However, the federal government wants to stay in shut communication with the affected corporations and get to work on a negotiating technique that can maximize the nationwide curiosity.

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