Trump Announces 100% Tariff on Imported Semiconductors... Impact on Korean Exports Unavoidable (Update)
by Kim Minyoung
Published 07 Aug.2025 07:04(KST)
Updated 07 Aug.2025 07:07(KST)
Tariff Exemption for Companies Manufacturing in the U.S.
Close Attention to Actual Tariff Rates Despite Most-Favored-Nation Status
On August 6 (local time), U.S. President Donald Trump announced that he would impose item-specific tariffs of approximately 100% on semiconductors. Semiconductors are the second largest export item from South Korea to the United States after automobiles, so if these tariffs are actually imposed, they are expected to have a significant impact on South Korea's exports.
At an event held at the White House that day to announce Apple's investment plans in the U.S., President Trump stated, "We will impose approximately 100% item-specific tariffs on semiconductors produced outside the United States." He added, "If you have promised or are in the process of building a semiconductor factory in the U.S., many people will not face such tariffs," emphasizing, "This is a very big statement." However, he did not specify when the tariffs would take effect.
President Trump also said, "For companies that are producing or have promised to produce in the United States, no tariffs will be imposed, regardless of the scale of employment or production."
He went on to reiterate his intention to impose a 100% tariff on imported semiconductors, saying, "If, for any reason, you claim to be building production facilities but later change your mind, we will bill you for the accumulated amount at a later date. That money must be paid."
Semiconductors are South Korea's second largest export to the United States after automobiles, and this measure is expected to have a considerable impact on South Korea as well. The South Korean government stated that, in the U.S.-Korea trade agreement concluded on July 30, it had received a promise of 'most-favored-nation treatment' regarding semiconductor tariffs. However, there is keen interest in what specific tariff rate will actually be applied.
Meanwhile, Apple announced in a press release that it is collaborating with Samsung at Samsung's semiconductor plant in Austin, Texas, to develop innovative next-generation chip manufacturing technologies. This is interpreted as part of Apple's plan to rebuild its global supply chain around the United States and to strengthen advanced manufacturing capabilities within the U.S. through technological cooperation with Samsung.
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