21 hours Ago By Korea Bizwire
This photo provided by Samsung Electronics Co. shows the company’s semiconductor production facility in Pyeongtaek, south of Seoul. (Image courtesy of Yonhap) SEOUL, April 3 (Korea Bizwire) — With U.
S. President Donald Trump’s announcement of a 25 percent tariff on South Korean imports, South Korea’s semiconductor industry let out a sigh of relief Thursday for being excluded but remained cautious as sector-specific tariffs loomed near. The White House on Wednesday (local time) said some goods, including semiconductors, steel and automobiles, would not be subject to the new tariff plans, imposing a minimum 10 percent “baseline” tariff on exports from all countries to the United States and country-specific “reciprocal” tariffs that include 25 percent duties for South Korea.
Industry officials remained vigilant as the U.S. administration has signaled separate sector-specific duties for those items.
South Korea’s leading chipmakers, Samsung Electronics Co. and SK hynix Inc., have not issued official statements, but they are actively discussing strategies to mitigate risks from any future trade policies.
“There are still uncertainties,” said an official from a South Korean semiconductor company, who asked not to be identified. “The global semiconductor value chain is highly complex, and major U.S.
tech companies play a central role. The U.S.
government may need more time to picture details.” Already, 25 percent tariffs on imported cars and key auto parts were set to take effect Thursday, potentially impacting all related industries. Experts suggest that South Korean firms may need to strengthen their U.
S. production strategies to align with Trump’s push for domestic job creation. “Trump continues to pressure foreign companies to establish manufacturing facilities in the United States and create jobs,” said Kim Dae-jong, a professor at Sejong University.
Adding to concerns, Trump’s has also expressed skepticism toward providing subsidies under the U.S. CHIPS Act.
Samsung Electronics signed a deal last year to receive a US$4.7 billion subsidy from the U.S.
Department of Commerce for its $37 billion investment in Texas, while SK hynix is set to receive $458 million in subsidies for its investment in Indiana, both under the CHIPS Act. (Yonhap).
