Trump Administration Pursues Country‑Specific Semiconductor Tariffs After Taiwan Deal
Updated (2 articles)
U.S. Announces Separate Country‑by‑Country Chip Tariff Strategy The administration will negotiate individual tariff agreements with each trading partner rather than applying a single standard, a stance voiced after the Taiwan semiconductor pact was disclosed [1][2]. Officials emphasized that the Taiwan deal serves as a reference point but will not dictate terms for other nations. This segmented approach signals a shift toward tailored trade measures in the high‑tech sector.
Taiwan‑U.S. Pact Grants Expanded Duty‑Free Import Limits Taiwanese firms constructing new U.S. semiconductor capacity may import up to 2.5 times their planned output without sectoral duties during the build‑out phase, and once projects are completed they can import 1.5 times the new production capacity duty‑free [1][2]. The provisions aim to accelerate U.S. chip investment while shielding early‑stage imports from tariffs. The fact sheet released by the Commerce Department outlines these thresholds as core elements of the bilateral agreement.
Trump Signs 25% Tariff on AI‑Related Semiconductors President Trump signed a proclamation imposing a 25 percent tariff on selected artificial‑intelligence chips entering the United States and on those subsequently re‑exported [1][2]. The measure invokes Section 232 of the Trade Expansion Act, framing the chips as a national‑security concern. The White House indicated that broader semiconductor duties could follow this initial action.
South Korea Warns of Limited Impact but Eyes Next Steps South Korea’s top trade envoy, after a six‑day U.S. visit, assessed the AI‑chip tariff as having modest effect on Korean manufacturers because it targets high‑end chips rather than the memory products that dominate Korean exports [1]. He cautioned that Washington may introduce a second‑stage tariff, prompting Seoul to prepare defensive strategies for its chip sector. The envoy pledged close coordination with domestic firms to mitigate potential fallout.
Uncertainty Persists Over Future Second‑Stage Tariffs Yeo Han‑koo highlighted lingering doubts about additional tariff rounds, noting that policy could evolve as the administration refines its semiconductor trade agenda [1]. He stressed the need for ongoing dialogue with industry stakeholders to secure favorable outcomes. The prospect of further duties keeps regional chip makers on alert.
Sources (2 articles)
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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 records 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 strategy of individualized tariffs, repeats the Taiwan pact terms, mentions the 25 % AI chip levy, and cites the use of Section 232 authority to justify the measures .
Timeline
Jan 15, 2026 – President Trump signs a proclamation imposing a 25 % tariff on artificial‑intelligence semiconductors imported into the United States and subsequently re‑exported, marking the first major AI‑chip duty under his administration [1][2].
Jan 16, 2026 – A senior U.S. official announces that the administration will negotiate separate semiconductor tariff agreements with individual countries, stressing that the newly‑signed Taiwan pact does not set a universal standard [2].
Jan 16, 2026 – The Commerce Department releases a fact sheet outlining the Taiwan‑U.S. chip‑tariff terms: Taiwanese firms building new U.S. capacity may import up to 2.5 × their planned output duty‑free during construction, and firms with completed projects may import 1.5 × their new U.S. capacity duty‑free [1][2].
Jan 16, 2026 – The administration cites Section 232 of the Trade Expansion Act of 1962 as the legal basis for the AI‑chip tariff, invoking national‑security authority to adjust imports deemed a threat [2].
Jan 17, 2026 – South Korea’s top trade envoy, Yeo Han‑koo, returns from a six‑day visit to the United States and says the initial 25 % tariff has limited impact on Korean chipmakers because it targets high‑end AI chips rather than memory chips, but warns Washington could launch a second‑stage tariff and pledges close coordination with Korean industry [1].
Jan 17, 2026 – Analysts note that the Taiwan‑U.S. framework could become a reference point for other suppliers, especially South Korea, potentially shaping future bilateral chip‑tariff negotiations across the region [1].
2026 (future) – The White House signals that broader tariffs on semiconductors and related products may follow the AI‑chip duty, indicating a possible expansion of the trade strategy later in the year [1][2].