South Korean commercial authorities expressed this Monday, the 24th, their willingness to cooperate with Taiwan to guarantee the most favorable agreement possible, given the tariffs that the United States intends to impose on the semiconductor industry.
“Taiwan will receive a treatment [tarifário] similar. Therefore, I believe that there is still a possibility that South Korea and Taiwan, through cooperation, can obtain the most favorable treatment possible,” South Korean chief trade negotiator Yeo Han-koo said on a radio program on local broadcaster MBC.
In the trade agreement announced on November 14, Washington promised to offer South Korea conditions “no less favorable” than those it may grant in the future to any country with a volume of semiconductor trade equal to or greater than that of South Korea.
On the subject, the head of South Korea’s Political Affairs Office, Kim Yong-beom, explained that same day that the provision means that South Korea will not receive differentiated treatment from Taiwan, its main competitor, which is currently in trade negotiations with the United States (USA).
In August, US President Donald Trump stated on several occasions that he would impose a 100% tariff on chips, although without announcing an effective date.
South Korea is home to large companies in the sector, such as Samsung Electronics and SK Hynix, while semiconductors are the main export to the United States from Taiwan, home to the world’s largest chip manufacturer TSMC.
South Korean chip exports to the US reached $10.7 billion (9.28 billion euros) in 2024, according to the Korea International Trade Association.