Trump Tariffs Begin to Squeeze South Korean Electronics Giants (Image supported by ChatGPT)
WASHINGTON, Aug. 7 (Korea Bizwire) – President Donald Trump said Wednesday that his administration will impose a 100% tariff on imported semiconductors, escalating trade tensions and raising fresh concerns for South Korean chipmakers such as Samsung Electronics Co. and SK hynix Inc.
The tariff announcement came during a White House event highlighting Apple Inc.’s $100 billion expansion plan in the U.S. Trump used the occasion to reaffirm his broader push for reshoring semiconductor manufacturing—a core theme of his economic agenda heading into the fall.
“We’ll be putting a tariff of approximately 100 percent on chips and semiconductors,” Trump said, adding that the levy would apply to all imported chips unless companies are manufacturing or building production facilities within the U.S. “If you’ve made a commitment to build, or if you’re in the process of building, there is no tariff,” he added.
The president didn’t specify when the new tariffs would take effect. However, in an interview with CNBC earlier this week, Trump said a broader set of industry-specific tariffs could be unveiled “within the next week or so.”
Trump is invoking Section 232 of the Trade Expansion Act of 1962, a provision that allows the president to restrict imports deemed a threat to national security. The same law was used during his first term to impose duties on steel and aluminum.
The 100% tariff plan represents a significant escalation in U.S. trade policy and is expected to reverberate across global supply chains—particularly in South Korea, one of the world’s largest producers of memory and logic chips. Samsung and SK hynix, which together supply a sizable portion of the global semiconductor market, have been closely monitoring U.S. policy signals amid fears of export disruption.
The White House event, which featured Apple CEO Tim Cook, also served as a platform for the iPhone maker to announce an additional $100 billion investment in the U.S., on top of a previously announced $500 billion commitment. Trump praised the move as a model for corporate investment in American manufacturing.
“These investments will directly create more than 20,000 brand-new American jobs,” Trump said, “and many thousands more at Apple’s suppliers like Corning, Broadcom, Texas Instruments—and Samsung, who all deal in that world.”
Apple, for its part, said Wednesday it is partnering with Samsung at the latter’s Austin, Texas, facility to roll out a new chipmaking technology described as “innovative” and unprecedented in global production. Few details were disclosed, but the announcement signals closer ties between the two tech giants in navigating an increasingly protectionist trade landscape.
The sweeping tariff policy, if enacted, could further redraw the global semiconductor map, favoring firms with U.S.-based operations and adding pressure on foreign manufacturers to localize production or face steep import penalties.
M. H. Lee (mhlee@koreabizwire.com)
