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Seoul Races to Shield Korean Firms as U.S. Expands Chip Tariffs

Written: 2026-01-18 13:07:07Updated: 2026-01-18 13:11:05

Seoul Races to Shield Korean Firms as U.S. Expands Chip Tariffs

Photo : YONHAP News

The presidential office said it will work to minimize the impact on South Korean businesses as it consults with the United States over the Trump administration's push to broaden semiconductor tariffs.

An official at the top office made the comment Sunday, citing a joint fact sheet released by the two countries last year, in which the United States agreed to provide semiconductor tariff rates "no less favorable" than those offered to other nations whose chip trade volume with the United States is at least as large as South Korea's.

The official said Seoul will also closely review last week's U.S.-Taiwan trade accord, which allows Taiwanese companies building new chip fabrication plants in the United States to import up to two-point-five times their construction‑phase capacity tariff‑free.

Once the factories are completed, companies will be permitted to import up to one-point-five times their U.S. production capacity without tariffs.

The official added that the administration plans to maintain communication with domestic industry stakeholders.

On Wednesday, Trump issued a proclamation imposing a 25 percent tariff on AI chips imported into the United States and subsequently reexported to other countries.

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