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South Korea Launches Emergency Review After U.S. Sets 25% Tariff on Certain Reexported AI Chips

Seoul is bracing for legal uncertainty over IEEPA with potential use of other U.S. tariff statutes.

Overview

  • The White House proclamation imposes a 25 percent tariff on specified AI-related chips brought into the United States and then reexported, with exemptions for U.S. data centers and non–data center consumer uses.
  • Industry Minister Kim Jung-kwan convened an emergency meeting and the government pledged all-out efforts to limit harm to Korean chipmakers while gathering input from semiconductor and critical minerals firms.
  • Trade Minister Yeo Han-koo delayed his return to continue assessments in Washington after meeting USTR Jamieson Greer, and Vice Trade Minister Park Jung-sung is set to speak with Commerce Under Secretary Jeffrey Kessler.
  • Yeo said Seoul is preparing for all possibilities as the U.S. Supreme Court weighs IEEPA-based tariffs, warning Washington could shift to authorities such as Section 301 or Section 338 to continue duties.
  • Officials pointed to a prior joint fact sheet in which the United States committed to provide Korea semiconductor tariff rates no less favorable than those offered to similarly large trading partners.