The Trump administration will pursue separate semiconductor tariff agreements with individual countries, a US official said, following a deal with Taiwan this week. The agreement allows Taiwanese firms building US chip capacity to import materials tariff-free up to 2.5 times planned output during construction. South Korea's trade minister assessed the impact on local chipmakers as limited.
The Trump administration plans to pursue separate semiconductor tariff agreements with individual countries. On January 16, 2026 (local time), a US official emphasized "separate agreements for separate countries" in response to a Yonhap News Agency question about whether the recent US-Taiwan chip tariff deal would set a standard for others.
The US Commerce Department released a fact sheet the previous day on the trade and investment deal with Taiwan, outlining the bilateral semiconductor tariff agreement. It states that Taiwanese companies building new US semiconductor capacity can import up to 2.5 times their planned capacity without sectoral duties during the approved construction period. For completed projects, they can import 1.5 times their new US production capacity tariff-free.
President Trump signed a proclamation on Wednesday imposing a 25 percent tariff on certain artificial intelligence (AI) semiconductors imported into the US and then reexported to other countries. The White House has indicated that Trump may impose "broader" tariffs on imports of semiconductors and their derivative products. These measures invoke Section 232 of the Trade Expansion Act of 1962, allowing the president to adjust imports deemed a threat to national security.
South Korea's Trade Minister Yeo Han-koo assessed the proclamation as having a "limited" impact on local chipmakers upon returning from a six-day US trip. "The first-stage measure announced is focused on advanced chips from NVIDIA and AMD, and excludes memory chips, which are key export products of local companies," Yeo told reporters at Incheon International Airport. However, uncertainties remain as Washington could announce a second-stage tariff measure for semiconductors. He pledged to work closely with local companies for the best outcome.
The Taiwan agreement has raised questions about whether it will serve as a model for chipmakers from other countries, including South Korea.
