The South Korean government has convened an emergency meeting to assess the impact of U.S. President Donald Trump's proclamation imposing 25 percent tariffs on certain AI semiconductors, pledging all-out efforts to minimize effects on domestic industries. Trade Minister Yeo Han-koo has extended his stay in Washington to examine ramifications. Seoul is also preparing for a potential U.S. Supreme Court ruling against Trump's reciprocal tariffs.
On January 15, 2026, U.S. President Donald Trump issued a proclamation to impose 25 percent tariffs on certain artificial intelligence semiconductors. The levy targets chips imported into the U.S. and then reexported, but exempts those for U.S. data centers or non-data center consumer applications. In response, the South Korean government held an emergency meeting chaired by Industry Minister Kim Jung-kwan to discuss strategies for affected chipmakers.
Trade Minister Yeo Han-koo, speaking to reporters in Washington, stated, "While watching how other countries with (trade) agreements with the U.S. would respond, (Korea) would need to explore an optimal judgment depending on how the situation would play out." He delayed his planned return to Seoul to review the proclamation's potential impacts. Yeo noted the Trump administration's "strong" determination to sustain its tariff policies, even if the U.S. Supreme Court rules against the use of the 1977 International Emergency Economic Powers Act (IEEPA) for reciprocal tariffs on partners like Korea, the EU, and Japan.
Observers warn that an adverse ruling could complicate refund processes for companies. Yeo said Seoul is preparing for all scenarios, adding that the administration might turn to Section 301 of the 1974 Trade Act or Section 338 of the 1930 Tariff Act. The Ministry of Trade, Industry and Resources plans to gather input from semiconductor and critical mineral sectors and arrange talks between Vice Trade Minister Park Jung-sung and U.S. Under Secretary of Commerce Jeffrey Kessler. Under last year's bilateral tariff agreement, the U.S. pledged semiconductor rates for Korea "no less favorable" than those for direct competitors.
The move aligns with Trump's broader tariff strategy to boost federal revenue, domestic manufacturing, and foreign investment. Korean authorities are collaborating with industry to analyze effects.
