Washington: U.S. President Donald Trump announced on Wednesday that his administration will impose a tariff of approximately 100 percent on imported semiconductors, a decision poised to significantly affect South Korea's chip manufacturing sector.
According to Yonhap News Agency, Trump made this announcement during a White House event where he also unveiled Apple Inc.'s large-scale investment plan. This development is being closely monitored by South Korean tech giants Samsung Electronics Co. and SK hynix Inc., as they assess the potential impact on their operations.
Trump specified that the 100 percent tariff would apply to all chips and semiconductors entering the United States, unless the company produces these components domestically. He emphasized that companies that have committed to or are in the process of building production facilities in the U.S. would be exempt from these tariffs.
While Trump did not provide a specific timeline for when the tariffs would be implemented, he mentioned in a CNBC interview on Tuesday that an announcement regarding sector-specific tariffs could be expected "within the next week or so."
The tariffs are being imposed under Section 232 of the Trade Expansion Act of 1962, which grants the president the authority to adjust imports when they are deemed a threat to national security.