 "A 3D-printed miniature model of U.S. President Donald Trump, the South Korea flag and the word \"Tariffs\" are seen in this illustration taken July 23, 2025. REUTERS")
Amid the imposing of huge tariffs by the Trump administrations on goods, tech, business and various others, South Korea’s trade Minister on Saturday informed that a US proclamation imposing a 25 per cent tariff on certain advanced computing chips would have a limited impact on South Korean companies.
Well, the imposition of 25 per cent on AI chips was done before the US exported Nvidia chips to China and South Korea is unaffected by the tariffs imposed.
Tariffs on AI chips
US President Donald Trump on Wednesday signed a proclamation to address national security concerns related to semiconductor imports, imposing a 25 per cent tariff on certain artificial intelligence chips, such as Nvidia’s H200 AI processor and AMD’s MI325X.
“While the government remains cautious at an early stage, the first-phase measures announced so far focus on advanced chips made by Nvidia and AMD,” Trade Minister Yeo Han-koo said.
Impact is limited on South Korea
“Since the memory chips that South Korean companies mainly export are currently excluded, the immediate impact is expected to be limited."
Yeo cautioned, however, that it was “not yet time to be reassured,” noting uncertainty over when and how a potential second phase could be expanded.
He added the government will continue to work closely with the industry to seek the best possible outcome for South Korean countries.
US to impose broader tariffs on semiconductors
Amid the tariff tussle, the US in the coming future is expected to impose broader tariffs on the import of semiconductors and their derivative products to incentivise domestic manufacturing, according to the fact sheet.
US Commerce Secretary Howard Lutnick said on Friday that South Korean chipmakers and Taiwanese companies that are not investing in the US may face up to 100 per cent tariffs unless they commit to increased production on American soil, Bloomberg reported. Lutnick was at a groundbreaking ceremony for Micron’s new plant outside Syracuse, New York.