Trump's comment on '100% tariff on semiconductors'… Presidential Office states "Korea has received Most Favored Nation status"

As U.S. President Donald Trump announced a plan to impose a maximum tariff of 100% on imported semiconductors, the Presidential Office stated that Korean semiconductors would be excluded from this measure.

On the 7th, Presidential spokesperson Kang Yu-jeong emphasized during a briefing, "Our country has received a promise of Most Favored Nation treatment."

President Trump recently stated, "We will impose a 100% tariff on all chips and semiconductors imported into the U.S.," which is interpreted as a desire to strengthen protectionist measures to encourage domestic production. However, the Korean government believes that an exception applies under the Most Favored Nation (MFN) clause.

Presidential Office: "Whether it’s 100% or 200%… we are a Most Favored Nation"

In response to related questions during the morning briefing, Spokesperson Kang stated, "Whether it’s 100% or 200%, the same standards apply to countries receiving Most Favored Nation treatment," adding, "It can be accepted that our semiconductor and pharmaceutical sectors have already been promised Most Favored Nation treatment, based on the words of Yang Hwan-goo, head of the Trade Negotiation Office of the Ministry of Trade, Industry and Energy."

In fact, Head Yang appeared on SBS Radio's 'Kim Tae-hyun's Political Show' that same day and explained, "If the MFN tariff rate is set at 15%, then Korea will only be subject to a 15% tariff," noting, "Whether it’s 100% or 200%, the key point is that we receive the same treatment."

When asked if there is any possibility that a 100% tariff would actually be imposed on semiconductors from Samsung Electronics or SK Hynix, he answered, "Yes."

Trump: "Exemption for companies producing in the U.S."… Focus on 'Korea-U.S. cooperation' variables

Earlier, President Trump stated, "We will impose a 100% tariff on all foreign semiconductors," and clarified, "However, we will not impose tariffs on companies that have promised to produce semiconductors in the U.S. or are already producing them."

This aligns with recent trends in the U.S. to foster the semiconductor industry and leaves open the possibility for favorable treatment for Korean companies, given that Samsung Electronics and SK Hynix are operating or constructing semiconductor factories in the U.S.

The government is analyzing its strategy for future trade negotiations with the Trump administration as one that actively emphasizes 'contribution to domestic production' and 'supply chain partnership' in order to secure exemptions or reductions in tariffs. At the same time, it plans to highlight that Korea is establishing itself as a 'reliable partner' across strategic industries, including pharmaceuticals and beyond.

Image sources: Donald Trump / gettyimageskorea, Kang Yu-jeong, Presidential spokesperson / News1