South Korea’s trade minister said on Saturday that a new U.S. tariff targeting advanced computing chips is expected to have only a limited immediate impact on South Korean companies, as most of the country’s key semiconductor exports are currently excluded from the measure.
Trade Minister Yeo Han-koo explained that the first phase of the U.S. action focuses primarily on high-end artificial intelligence chips produced by companies such as Nvidia and AMD. South Korea’s semiconductor industry is heavily centered on memory chips, which are not covered by the new tariffs.
“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.”
Despite this assessment, the minister warned against complacency. He noted that uncertainty remains over whether and how a second phase of tariffs could be expanded in the future, potentially affecting a broader range of semiconductor products.
“It is not yet time to be reassured,” Yeo said, adding that the government will continue to work closely with domestic chipmakers to protect their interests and seek the best possible outcome.
The comments follow a proclamation signed on Wednesday by U.S. President Donald Trump, citing national security concerns related to semiconductor imports. The proclamation imposes a 25% tariff on certain artificial intelligence chips, including Nvidia’s H200 processor and AMD’s MI325X.
The White House stressed that the tariffs are narrowly targeted. They do not apply to chips and related devices imported for U.S. data centers, startups, non-data-center consumer uses, civil industrial applications or U.S. public sector purposes. Data centers, in particular, represent one of the largest sources of demand for advanced AI chips.
However, the U.S. administration signaled that broader measures could follow. According to an official fact sheet, Washington may introduce wider tariffs on semiconductor imports and derivative products in the future to further incentivize domestic chip manufacturing.
U.S. Commerce Secretary Howard Lutnick reinforced that message on Friday, saying that South Korean and Taiwanese chipmakers that do not invest in U.S. production facilities could face tariffs of up to 100%. His comments were made during a groundbreaking ceremony for Micron’s new semiconductor plant near Syracuse, New York.
The proclamation is the result of a nine-month investigation under Section 232 of the Trade Expansion Act of 1962. It targets high-end semiconductors that meet specific performance thresholds, as part of a broader U.S. strategy to reduce reliance on overseas chip production, particularly in Taiwan.
