US Considering Targeted Semiconductor Tariffs as South Korea Pledges Support for Chip Firms

U.S. Commerce Secretary Howard Lutnick announced that the Trump administration is developing a targeted and thoughtful tariff policy for semiconductors. During a CNBC interview on Wednesday, Lutnick stated that companies manufacturing products within the United States would receive tariff relief, while those producing outside the U.S. would be required to pay duties to access the American market. He described this approach as a sensible way to boost domestic manufacturing, reduce the trade deficit, and increase federal revenue and foreign investment.

Reports from Politico indicate that the proposed policy could expand beyond chips to include goods such as laptops, gaming consoles, and data center servers. Additionally, the administration may consider setting separate tariff rates and quotas for individual countries. Lutnick noted that this strategy would mirror the administration's previous approach to pharmaceutical imports.

In response, the South Korean presidential office stated that no details regarding the tariffs have been finalized. The government affirmed it will closely monitor developments and maintain consultations with the United States to prevent unfavorable impacts on South Korean companies. This is particularly significant for Samsung Electronics and SK hynix, the world's leading memory chip manufacturers. Samsung currently operates production facilities in Texas, while SK hynix has an ongoing investment in Indiana focused on advanced memory packaging.