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Seoul Moves to Shield Chipmakers as U.S. Tariff Drive Escalates

South Korea readies talks under a pledged 'no less favorable' standard to seek Taiwan-level relief for its semiconductor firms.

Overview

  • The presidential office said it will invoke the 'no less favorable' commitment from last year’s Korea–U.S. talks and begin consultations to protect Korean chipmakers.
  • President Donald Trump’s proclamation imposes a 25 percent tariff on certain AI and high‑performance chips reexported from the United States under Section 232, with the White House signaling possible broader duties.
  • Seoul has launched emergency consultations with Samsung Electronics and SK hynix and is preparing internal briefings to shape its negotiating position.
  • Officials are reviewing the U.S.–Taiwan framework that links tariff exemptions to major U.S. investments, including TSMC’s pledged $250 billion and quota terms tied to plant output during construction and operation.
  • Trade Minister Yeo Han‑koo said the initial impact on Korean firms appears limited because memory chips are excluded, while warning of uncertainty over a potential second phase of measures and noting U.S. pressure to expand production in America.