South Korea’s Chipmakers Exempt from U.S. 100% Tariff, Boosting Semiconductor Trade

South Korea's Trade Minister Yeo Han-koo confirmed that Samsung Electronics and SK Hynix will not face the 100% U.S. tariff on semiconductor chips, citing their existing and planned investments in American fabrication plants. The exemption underscores Seoul's strategic position in global chip supply chains amid escalating trade tensions.

U.S. President Donald Trump's warning of punitive tariffs for non-domestic semiconductor producers excluded countries committed to U.S.-based manufacturing. Samsung's Texas facilities in Austin and Taylor, part of a $17 billion expansion, exemplify the investments securing this preferential treatment.

The policy ambiguity leaves room for negotiation, with Yeo expressing Optimism for a bilateral semiconductor trade deal. Market analysts note the decision could stabilize supply chains but heighten competition for non-exempt exporters.