South Korea’s Trade Minister Yeo Han-koo on Saturday (Jan. 17) said that a new U.S. proclamation imposing a 25 per cent tariff on certain advanced computing chips is expected to have a limited immediate effect on South Korean companies.
“While the government remains cautious at an early stage, the first-phase measures announced so far focus on advanced chips made by Nvidia and AMD,” Yeo said. “Since the memory chips that South Korean companies mainly export are currently excluded, the immediate impact is expected to be limited.”
Yeo, however, urged vigilance, noting that it is “not yet time to be reassured,” given uncertainties about when and how a potential second phase of tariffs could be expanded. He added that the South Korean government will continue working closely with industry to seek the best possible outcome for domestic companies.
The tariffs were announced last Wednesday by U.S. President Donald Trump, who signed a proclamation citing national security concerns related to semiconductor imports. The measure imposes a 25 per cent tariff on specific artificial intelligence (AI) chips, including Nvidia’s H200 AI processor and AMD’s MI325X.
The White House emphasized that the tariffs are narrowly targeted. They do not apply to chips and derivative devices imported for U.S. data centres, non-data centre consumer applications, startups, non-data centre civil industrial uses, or public sector applications. The aim, officials said, is to protect national security without disrupting the broader semiconductor supply chain that supports critical U.S. industries.
According to a White House fact sheet, the U.S. may consider broader tariffs on imports of semiconductors and related products in the near future to incentivize domestic production. This step is part of a broader push to reduce dependence on foreign semiconductor manufacturers, particularly in regions such as Taiwan.
U.S. Commerce Secretary Howard Lutnick underscored the administration’s stance on Friday, saying that South Korean and Taiwanese companies that are not investing in domestic U.S. production could face tariffs of up to 100 per cent. Lutnick made the comments during a groundbreaking ceremony for Micron Technology’s new plant near Syracuse, New York, highlighting the administration’s focus on boosting domestic manufacturing capacity.
The proclamation follows a nine-month investigation conducted under Section 232 of the Trade Expansion Act of 1962, which examines imports that may threaten U.S. national security. The investigation targeted a range of high-end semiconductors that meet specific performance benchmarks, as well as devices containing them, making them subject to import duties.
South Korea is a global leader in semiconductor manufacturing, particularly in memory chips, which include dynamic random-access memory (DRAM) and NAND flash products. Companies such as Samsung Electronics and SK Hynix are among the world’s top exporters of these chips. Because the current tariffs do not cover memory chips, analysts say the immediate economic impact on South Korean exports is expected to be contained.
However, experts caution that the situation remains fluid. “The first phase is narrowly focused, but the possibility of an expanded second phase cannot be ruled out,” said Lee Joon-ho, a semiconductor analyst at the Korea Institute for Industrial Economics & Trade. “South Korean companies will need to closely monitor developments and consider their supply chain strategies in response.”
The U.S. move reflects a broader geopolitical trend in which governments are increasingly linking high-tech supply chains to national security. Washington has signaled that it wants to strengthen domestic semiconductor manufacturing while reducing reliance on foreign suppliers, particularly in Asia, which dominates global chip production.
South Korean officials said they will continue engaging with U.S. authorities and industry partners to minimize disruption and protect the interests of domestic manufacturers.
