Overview
- President Trump’s Jan. 14 proclamation imposed a 25% tariff on specified advanced semiconductors, with broad end‑use exclusions and no duty drawback, and ordered a 90‑day negotiating update.
- U.S. Commerce Secretary Howard Lutnick warned memory makers they can “pay a 100% tariff, or build in America,” signaling steeper duties for firms that do not expand U.S. production.
- Taiwan’s pact commits at least $250 billion in private investment and $250 billion in state-backed credit guarantees, in exchange for duty-free imports up to 2.5 times planned U.S. capacity during construction and 1.5 times completed capacity afterward, with a 15% reciprocal tariff cap.
- South Korea’s earlier framework includes a $350 billion investment pledge and a “no less favorable” clause; President Lee Jae Myung said a 100% duty would likely raise U.S. prices given Korean and Taiwanese firms’ 80–90% market share.
- Singapore’s trade ministry assessed minimal immediate impact because the first tariff phase targets chips not made there, while further U.S. measures remain possible after the ongoing negotiation period.