South Korea plans to negotiate with Washington to protect its memory chip industry after the Donald Trump administration imposed steep tariffs on select high-end AI semiconductors.
South Korea Eyes Exemptions On US Chip Tariffs
South Korea will seek preferential treatment for its semiconductor exports following the U.S. announcement of a 25% tariff on advanced AI chips, a presidential office spokesperson said Sunday, reported Reuters.
The move comes after the Trump administration cited national security concerns in targeting processors such as Nvidia Corp’s (NASDAQ:NVDA) H200 and Advanced Micro Devices, Inc.’s (NASDAQ:AMD) MI325X.
Officials stressed that South Korea’s trade deal with the U.S. already includes provisions ensuring the country will not face worse treatment than key competitors.
Limited Immediate Impact On Samsung And SK Hynix
On Saturday, South Korea’s trade minister indicated that the new tariffs would have a limited effect on domestic chipmakers, including Samsung Electronics (OTC:SSNLF) and SK Hynix.
Trump Administration Signals More Tariffs Could Follow
The White House has described the 25% levy as “phase one” of a broader semiconductor strategy.
A U.S. official, speaking on condition of anonymity, told Reuters earlier that further tariffs could be imposed depending on negotiations with countries and chipmakers.
Strategic Investments Strengthen Seoul’s Leverage
South Korea has pledged $350 billion in U.S. investments across sectors like shipbuilding and advanced manufacturing, enhancing its bargaining position.
In December 2025, the U.S. cut general tariffs on Korean imports to 15%, retroactive to November and agreed to remove tariffs on airplane parts, aligning Korea’s trade treatment with that of Japan and the EU.
Nvidia stock scores low on Value in Benzinga’s Edge Stock Rankings, with a favorable price trend in the short, medium and long terms.
Photo Courtesy: Tomas Ragina on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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