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US Commerce Secretary Howard Lutnick attends an occasion on the White Home on Jan. 14, 2026. (AP/Yonhap)
US Commerce Secretary Howard Lutnick warned on Friday that chipmakers may face a 100% tariff except they put money into the US.
The Korean authorities and Korean chipmakers are sweating over the warning, which appears to be geared toward massive producers of reminiscence semiconductors equivalent to Korean companies Samsung Electronics and SK Hynix.
Bloomberg reported that Lutnick made the feedback whereas talking with reporters on the groundbreaking for a brand new semiconductor plant in Clay, New York. Lutnick remarked that the latent tariffs laid out in a commerce settlement with Taiwan may additionally influence Korean chipmakers.
“Everybody who needs to construct reminiscence has two decisions: They will pay a 100% tariff, or they will construct in America,” the US commerce secretary mentioned.
Lutnick’s warning got here shortly after the US authorities introduced a commerce settlement with Taiwan that was based mostly on waiving semiconductor tariffs.
Offered that Taiwanese firms construct semiconductor fabrication vegetation, or “fabs,” within the US, Washington agreed to waive tariffs on 250% of the fabs’ manufacturing capability throughout building and on 150% of that capability after their completion.
Bloomberg reported that below the settlement, TSMC, Taiwan’s greatest chipmaker, plans to construct not less than 4 extra fabs within the US along with the six already deliberate.
Whereas the US and Korea agreed that almost all Korean merchandise can be topic to a 15% tariff throughout commerce negotiations final 12 months, they didn’t finalize the tariff on semiconductors. They solely confirmed the precept that Korea would face circumstances “no much less favorable” than commerce rivals equivalent to Taiwan.
Samsung Electronics and SK Hynix have already pledged to speculate US$37 billion and US$4 billion, respectively, within the US.
The Korean authorities is planning a response based mostly on the tariff deal brokered with the US final October.
The Blue Home mentioned Sunday that it’ll “maintain deliberations to reduce the influence on Korean firms below the precept of Korean semiconductors receiving ‘no much less favorable’ phrases as laid out in our joint truth sheet with the US.”
On Saturday, Commerce Minister Yeo Han-koo addressed the difficulty whereas talking to reporters at Incheon Airport after coming back from a visit to the US.
“In our tariff negotiations with the US final 12 months, we agreed that the semiconductor sector wouldn’t be handled much less favorably than different main international locations. By means of shut communication with the trade and thru deliberations with the US, the federal government means to make sure the very best final result for Korean firms,” Yeo mentioned.
By Kim Received-chul, Washington correspondent; Kim Kyung-wook, workers reporter; Website positioning Younger-ji, workers reporter
Please direct questions or feedback to [english@hani.co.kr]
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