The US government plans to negotiate individual semiconductor tariff agreements with various nations, as stated by a US official following a recent accord between the US and Taiwan on chip tariffs. The US Commerce Department disclosed details of a trade and investment pact with Taiwan, specifically addressing semiconductor tariffs. Taiwanese firms establishing new semiconductor capacity in the US can import up to 2.5 times the planned capacity without facing sectoral duties during the construction phase.
The agreement also allows Taiwanese companies that have finished new chip production projects in the US to import 1.5 times their new US production capacity without incurring sectoral duties. This development has sparked inquiries about whether similar standards will be set for chip manufacturers from other countries, such as South Korea. President Trump recently authorized a 25 percent tariff on specific semiconductors for artificial intelligence that are imported to the US and then reexported.
Notably, the White House hinted at the possibility of imposing broader tariffs on semiconductor imports and their derivative products. Trump’s implementation of industrywide tariffs under Section 232 of the Trade Expansion Act of 1962, citing national security concerns, has been a recurring strategy. South Korea’s trade envoy downplayed the impact of the US proclamation on semiconductor tariffs, particularly on local chip producers, emphasizing that the initial measures target advanced chips from companies like NVIDIA and AMD, excluding memory chips, a significant export item for South Korean firms.
