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Trade minister says impact of new U.S. semiconductor tariff proclamation likely 'limited'

Published: 17 Jan. 2026, 15:55 Updated: 18 Jan. 2026, 08:51

SEO JI-EUN
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Trade Minister Yeo Han-koo speaks to reporters after arriving at Incheon International Airport on Jan. 17, amid U.S. concerns over a recent revision to a Korean law aimed at addressing false and fabricated online information. [NEWS1]

Korea’s chief trade negotiator said on Saturday that the immediate impact of the United States' newly announced semiconductor proclamation on Korean companies is expected to be “limited” but cautioned that potential follow-up measures remain a concern.

Yeo Han-koo, the minister of trade at the Ministry of Trade, Industry and Energy, made the remarks upon returning to Korea on Saturday after a visit to Washington, where he met with U.S. government officials. Yeo arrived in Washington last Sunday and was originally scheduled to return a day earlier. However, he delayed his return after U.S. President Donald Trump on Wednesday signed a proclamation that imposed tariffs on imported semiconductors and ordered a review of processed critical mineral imports.

According to Yeo, the first phase of the U.S. measures focuses on advanced chips produced by Nvidia and AMD. As memory chips, the main export items for Korean firms, are excluded, Yeo said the impact on Korean companies such as Samsung Electronics and SK hynix is likely to remain limited for now.

However, Yeo warned that it is too early to be reassured, noting uncertainty over the scope and timing of a possible second phase.

“The government will continue to work closely with the industry to ensure the best possible outcome for our companies,” he said.

Yeo said Korea had previously secured assurances during tariff negotiations last year that its semiconductor industry would not be treated less favorably than those of other major economies, but U.S. Secretary of Commerce Howard Lutnick reiterated on Friday that Korean memory chipmakers and Taiwanese companies that do not invest in the United States may face up to 100 percent tariffs unless they commit to increased production on American soil, Bloomberg reported.

“With the outcome of consultations between the United States and Taiwan now available, we will need to refer to those results and continue further discussions with the United States on specific issues,” Yeo said.

On the critical minerals measure, he said that the move reflects Washington’s broader push to diversify supply chains and that Seoul would continue to monitor developments and consult U.S. officials.

Yeo also addressed delays surrounding the Korea-U.S. FTA joint committee meeting, originally expected to take place in December 2025 to discuss nontariff barriers.

He dismissed concerns over the delay and said it is “not an issue that should be rushed.”

He said nontariff issues “cover a wide range” and noted that he met several times with officials from the Office of the U.S. Trade Representative during his visit. He added that the two sides are narrowing differences through regular communication channels.

Asked whether the delay was related to the Korean government's probe into Coupang, Korea's e-commerce giant based in Seattle, Yeo said he used the trip to broadly explain Korea’s legislative intent on digital issues to both the U.S. administration and Congress.

In the left picture, Coupang founder Bom Kim, right, speaks to then-U.S. State Secretary nominee Marco Rubio, and in the right picture, Kim, left, speaks to then-U.S. Commerce Secretary Howard Lutnick during a reception hosted by Donald Trump Jr. in Washington on Jan. 18, 2025. [YONHAP]

The trade minister added that he emphasized that the issue is “not about whether a company is American or Korean” but about “responding to an unprecedented large-scale personal data breach in a transparent and nondiscriminatory manner under Korean law.”

“If a Korean company operating in the United States had caused a similar data breach, Washington would have taken comparable action,” he said, adding that U.S. officials understood the explanation.

Yeo acknowledged that some misunderstandings remain in the United States, as relying solely on corporate perspectives can make understanding the situation difficult, but noted that “many people came away with a more balanced view.”

However, he added that given the number of lawmakers in the U.S. Congress and the diverse interests tied to their constituencies, differing views will continue to emerge.

“We will not be satisfied with a single round of engagement,” Yeo said. “We will continue to strengthen efforts to clearly explain our policy intentions.”

Update, Jan. 17:Added U.S. Secretary of Commerce Howard Lutnick's remarks.

BY SEO JI-EUN [[email protected]]