US Commerce Secretary: "Tariff Exemption for Building Factories in US During Trump Term"
"Exemptions Granted for Fulfilling U.S. Factory Construction Pledges"
Samsung and SK May Also Qualify for Tariff Waivers if Investments Are Fulfilled
U.S.-China Tariff Truce May Be Extended by 90 Days
On August 7 (local time), U.S. Secretary of Commerce Howard Lutnick announced that only companies that promise to build, and actually follow through on building, manufacturing facilities within the United States during President Donald Trump's term will be exempted from tariffs on semiconductor products.
In an interview with Fox Business that day, Secretary Lutnick stated, "The President's remarks (yesterday) were: 'As long as you are building a factory in the United States, we will not impose tariffs. However, if you do not build a factory in the United States, we will impose a 100% tariff.'"
He explained, "If a company promises to build a factory in the United States during the President's term, reports this to the Department of Commerce, and the construction process is monitored from start to finish, the President will allow the company to import semiconductors without tariffs during the construction period."
He repeatedly emphasized, "It must be verified and supervised that a factory is actually being built in the United States."
This measure is intended to pressure companies to invest and build factories in the United States, with the promise of tariff exemptions if they actually construct the facilities.
According to Secretary Lutnick's remarks, Samsung Electronics and SK Hynix, which are each investing in semiconductor manufacturing facilities in Texas and Indiana, are highly likely to be exempted from semiconductor tariffs.
The previous day at the White House, President Trump stated, "We will impose about a 100% tariff on semiconductors," clarifying that "all chips and semiconductors coming into the United States" will be subject to the tariff, but "if you build (a semiconductor manufacturing plant) in the United States, it will not be imposed."
Secretary Lutnick emphasized that this measure is "a powerful incentive to attract manufacturing facilities to the United States."
He noted, "TSMC has announced a $200 billion investment in Arizona, and Micron has announced $200 billion investments each in Idaho and New York," adding, "A total of $1 trillion in semiconductor-related investments is expected across the United States."
Secretary Lutnick stated that, under the new tariff measures imposed by the Trump administration, the U.S. government could collect up to $50 billion in tariff revenue per month. Last month's tariff revenue was about $30 billion.
He said, "Now semiconductors are coming in, pharmaceuticals are coming in, and all kinds of additional tariff revenues are coming in," adding, "If this continues, tariff revenue could reach $50 billion per month."
In an interview with CNBC on August 5, President Trump stated that he plans to announce itemized tariffs on semiconductors and pharmaceuticals "next week or so." He also predicted, "At first, we will impose a small tariff on pharmaceuticals, but after one year or at most a year and a half, it will be raised to 150%, and later to 250%."
Kang Yoojeong, spokesperson for the Presidential Office, stated that Korea secured Most-Favored-Nation (MFN) status in the semiconductor and pharmaceutical sectors through an agreement with the United States on July 30. She emphasized that the promise for Korea to receive more favorable or at least equal treatment compared to other countries remains valid.
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Secretary Lutnick also mentioned the possibility of extending the tariff truce with China. He indicated that the agreement, which is set to expire on August 12, is likely to be extended for 90 days.
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