This situation was ignited after Trump earlier announced plans to impose a 100% tariff on semiconductor imports.
South Korea sees potential to collaborate with Taiwan in negotiating with US President Donald Trump over chip tariffs, Trade Minister Yeo Han-koo said on Monday, November 24.
“Taiwan is also in talks, so South Korea and Taiwan can work together to get the best possible treatment,” the trade minister said during a radio interview.
Highlighting its commitment, South Korea finalized a trade deal this month to reduce US tariffs in exchange for major South Korean investments in key American sectors. Taiwan, meanwhile, is still negotiating its trade terms.
US-South Korea deal spark tension in the tech market
In the US-South Korea deal, sources close to the situation mentioned that America stated that semiconductor tariffs imposed on the Asian country would not be less than any terms that could be offered in a future deal covering at least the same amount of semiconductor trade as South Korea’s. This agreement is related to Taiwan, according to South Korean officials.
Reports reveal that US officials privately hinted that there is a possibility they may not impose the long-awaited tariffs on semiconductors soon. Consequently, this move could delay a crucial part of Trump’s economic plan.
When reporters questioned a South Korean official about these discussions, the official failed to provide evidence that direct talks had been held with Taiwan regarding this issue.
The US officials’ statement on the topic of discussion was made public after they shared these messages with individuals in both government and private sectors over the past few days, as reported by two individuals familiar with the situation and a third person who has been informed about the talks.
A fourth individual monitoring the issue mentioned that the administration is being more careful to avoid upsetting China. Notably, these discussions have not been made public until now.
Meanwhile, according to data from customs authorities, South Korea’s semiconductor exports to the US increased by 51.2% to a record $1.2 billion in October. This increase was primarily driven by surging demand for advanced chips, which are essential for running AI.
Trump might impose 100% tariff on semiconductor imports
Trump’s advisors were taking their time regarding chip tariffs to prevent a conflict with Beijing over trade, which could lead to another trade war and disrupt the supply of important rare-earth minerals, according to two sources.
These individuals warned that no decision was final until it received approval from the administration, and they noted that high tariffs could be implemented at any moment. The sources requested anonymity to share details about private policy discussions.
This situation was ignited after Trump announced in August that the US would impose a tariff of roughly 100% on semiconductor imports. However, this tariff policy would exclude companies that manufacture in the US or have plans to do so.
Following his announcement, officials in Washington shared their suggestions over the past few months, revealing that the imposition of a 100% tariff on semiconductor imports will take place soon. However, these proposals have been changing as the administration continued to weigh on the perfect time and way to implement the tariff.
When reporters reached out to an official from the White House and another from the Commerce Department to clarify these claims, the officials stated that the administration had not implemented any change in its stance.
Still, the White House official insisted that the two officials’ statement was inaccurate but did not clarify what made it inaccurate.
“The administration is still focused on bringing back manufacturing that is important for our national and economic safety.” The Commerce official added, “There has been no change in the department’s policy about semiconductor 232 tariffs.”
Don’t just read crypto news. Understand it. Subscribe to our newsletter. It’s free.
