South Korea says Trump’s chip tariffs will have limited impact

Sunday 18 January 2026 - 10:00

By: Sahili Aya

South Korea says Trump’s chip tariffs will have limited impact

South Korea’s Trade Minister Yeo Han-koo has stated that the latest U.S. semiconductor tariffs announced by President Donald Trump are expected to have a “limited” effect on Korean chipmakers. The initial tariffs focus on certain advanced chips from U.S. companies such as NVIDIA and AMD, while key memory chips, which represent a significant portion of South Korea’s semiconductor exports, are excluded.

Yeo cautioned, however, that uncertainties remain. The U.S. government may implement a second-stage tariff affecting a broader range of semiconductors, potentially impacting local manufacturers in the future. He emphasized that the South Korean government would work closely with domestic companies to minimize negative consequences and secure favorable outcomes.

The tariffs were imposed under Section 232 of the Trade Expansion Act of 1962, citing national security concerns related to semiconductor imports, manufacturing equipment, and derivative products. While the current measures target specific advanced chips, the White House signaled that additional tariffs or a tariff-offset program could be introduced to encourage domestic chip production in the U.S.

Industry analysts say that while the immediate impact on South Korea is limited, the move highlights global tensions in the semiconductor market and could affect international supply chains if broader measures are enacted.