DistantNews
Support us
🇰🇷 South Korea /Technology

Editorial: South Korea must persuade Washington that semiconductor tariffs would hurt US companies too

From Dong-A Ilbo · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

Opinion Official statement Ongoing story
  • US Commerce Secretary Howard Lutnick said Washington is considering targeted, high-intensity semiconductor tariffs on companies that do not produce in the United States.
  • The editorial warns that tariffs could raise costs for US technology companies, data centers and consumer goods, while increasing inflation.
  • It urges South Korea to negotiate a mutually beneficial strategy and highlight cooperation between Korean chipmakers and US technology companies.

Washington’s pressure for semiconductor production on US soil is becoming more explicit. Commerce Secretary Howard Lutnick said the United States was considering “targeted and sophisticated” semiconductor tariffs, describing a policy under which companies that do not produce in America would have to pay a price.

The approach would offer tariff relief to countries that build large factories and make a substantial contribution to the US economy. The United States had imposed punitive tariffs of about 50% on Chinese semiconductors through last year. Since January, it has also applied 25% tariffs to some advanced chips made overseas by US companies Nvidia and AMD.

Taiwan Semiconductor Manufacturing Co. has retained tariff-free treatment while planning a $265 billion investment in Arizona. The same logic, the editorial says, is being applied to South Korea’s Samsung Electronics and SK hynix, which currently benefit from tariff-free access but face demands for large-scale investment in the United States.

targeted and sophisticated

· Howard LutnickThe US commerce secretary’s description of the semiconductor tariffs under consideration.

The editorial argues that US companies could ultimately suffer most from the tariffs. Semiconductor prices have already risen sharply since last year, and additional duties could increase the cost of data-center construction for US technology and artificial-intelligence companies. If tariffs spread to smartphones, computers and household appliances that contain chips, consumer prices could rise further.

It also warns South Korea not to underestimate the risk of US pressure. The editorial recalls that Washington took forceful measures, including the US-Japan Semiconductor Agreement, after Japanese companies dominated the global chip market in the 1980s. Seoul should therefore seek a “win-win strategy” before wider pressure begins, stressing the close ties between Korean chipmakers and US technology firms. It says poor negotiating leverage could leave Korean companies facing excessive US investment demands or an unmanageable tariff burden.

If you do not produce in the United States, you will have to pay a price.

· Howard LutnickHe explained the pressure behind the proposed tariff policy.
About this summary

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

More Stories

From Our Blog