Trump Administration Pursues Country‑Specific Semiconductor Tariff Deals Following Taiwan Agreement
Updated (2 articles)
U.S. Announces Separate Tariff Negotiations for Each Country The administration will negotiate individual semiconductor tariff agreements rather than a single global rule, a stance voiced after the U.S.–Taiwan chip‑tariff pact was disclosed [1][2]. Officials emphasized that the Taiwan deal “should not automatically set a standard for other nations.” This segmented approach signals a shift toward country‑by‑country trade policy in the high‑tech sector.
Taiwan‑U.S. Chip Deal Grants Expanded Duty‑Free Import Limits Under the bilateral agreement, Taiwanese firms constructing new U.S. semiconductor capacity may import up to 2.5 times their planned output without sectoral duties during construction, and up to 1.5 times after project completion [1][2]. The provision aims to accelerate U.S. chip production by easing import costs for equipment and components tied to new facilities. The fact sheet released by the Commerce Department outlines these thresholds as central to the pact.
Trump Signs 25% Tariff on AI‑Related Semiconductors President Trump issued a proclamation imposing a 25 percent tariff on selected artificial‑intelligence semiconductors imported into the United States and subsequently re‑exported [1][2]. The move invokes Section 232 of the Trade Expansion Act of 1962, framing the tariffs as a national‑security measure. The White House indicated that broader duties on additional semiconductor products could follow.
South Korea Warns of Limited Impact but Possible Second‑Stage Tariffs Korea’s top trade envoy, returning from a six‑day U.S. visit, said the initial 25 percent tariff mainly targets high‑end chips and has limited effect on Korean memory‑chip exporters [1]. He cautioned that Washington may introduce a second‑stage tariff, urging close coordination with domestic chipmakers to mitigate future risks. Uncertainty remains about the scope and timing of any further measures.
Sources
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1.
Yonhap : Trump administration seeks separate semiconductor tariff deals with individual countries after Taiwan pact – Details the U.S. plan for country‑specific agreements, outlines Taiwan‑U.S. duty‑free import ratios, notes the 25 % AI chip tariff, and highlights South Korea’s limited‑impact assessment and warning of possible second‑stage tariffs .
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2.
Yonhap : U.S. to pursue separate tariffs by country on semiconductors – Reports the same separate‑deal strategy, repeats Taiwan deal terms, mentions the 25 % AI tariff and its basis in Section 232, and raises questions about a broader standard for other nations .
Timeline
Jan 15, 2026 – President Trump signs a proclamation imposing a 25 percent tariff on certain artificial‑intelligence semiconductors imported into the United States and later re‑exported, invoking Section 232 of the Trade Expansion Act and signaling that broader semiconductor duties may follow[1][2].
Jan 16, 2026 – A senior U.S. administration official tells reporters that Washington will negotiate “separate” semiconductor tariff agreements with individual countries, stressing that the newly announced U.S.–Taiwan chip‑levy pact “should not automatically set a standard for other nations”[2].
Jan 16, 2026 – The Commerce Department releases a fact sheet detailing the U.S.–Taiwan chip‑tariff terms: Taiwanese firms building new U.S. capacity may import up to 2.5 times their planned output duty‑free during construction, and firms with completed projects may import 1.5 times their new U.S. production capacity duty‑free[2].
Jan 16, 2026 – The administration cites Section 232 authority as the legal justification for the AI‑chip tariff, framing the measure as a national‑security response to advanced‑technology imports[2].
Jan 17, 2026 – South Korea’s top trade envoy Yeo Han‑koo, returning from a six‑day U.S. visit, says the initial 25 percent AI‑chip tariff has limited impact on Korean memory‑chip exporters but warns that Washington could unveil a “second‑stage” tariff and pledges to work closely with domestic industry to mitigate any future measures[1].
Jan 17, 2026 – A U.S. official reiterates the “separate‑by‑country” approach, noting that the Taiwan agreement serves as a template for future negotiations but will not dictate terms for other partners such as South Korea, and highlights the import‑allowance provisions for Taiwanese firms as central to the deal[1].