Trade Minister Yeo Han-koo said on Saturday that the first phase of U.S. action targets high-end artificial intelligence processors made by companies such as Nvidia and AMD. “Since the memory chips that South Korean companies mainly export are currently excluded, the immediate impact is expected to be limited,” he said.
Still, Yeo warned that it was “not yet time to be reassured,” pointing to uncertainty over the timing and scope of a possible second phase. He added that the government would continue working closely with industry to secure the best possible outcome for South Korean chipmakers.
U.S. President Donald Trump this week signed a proclamation imposing a 25% tariff on selected advanced AI chips, citing national security concerns related to semiconductor imports. The measure applies to products such as Nvidia’s H200 AI processor and AMD’s MI325X.
According to the White House, the tariffs are narrowly targeted and do not apply to chips and derivative devices imported for U.S. data centers, startups, non–data center consumer uses, civil industrial applications, or U.S. public sector needs. However, a fact sheet accompanying the proclamation said broader tariffs on semiconductors and related products could follow, as Washington seeks to encourage more chip manufacturing on American soil.
Adding to the uncertainty, U.S. Commerce Secretary Howard Lutnick said on Friday that South Korean and Taiwanese chipmakers that do not invest in U.S. production could face tariffs of up to 100%, according to a Bloomberg report. Lutnick made the comments while attending a groundbreaking ceremony for a new plant by Micron near Syracuse, New York.
The proclamation follows a nine-month investigation under Section 232 of the Trade Expansion Act of 1962 and targets high-end semiconductors that meet specific performance thresholds, along with devices containing them. The move is part of a broader U.S. strategy to reduce reliance on overseas chip manufacturing hubs, particularly in Taiwan, and strengthen domestic semiconductor production.
