US threatens 100% tariffs on South Korea and Taiwan over lack of investment
US Secretary of Commerce Howard Lutnick (Photo: Getty Images)
The administration of US President Donald Trump has warned that certain companies from South Korea and Taiwan could face tariffs of up to 100% on semiconductor imports if they do not invest in chip manufacturing within the US, states US Secretary of Commerce Howard Lutnick.
Lutnick stated that Washington intends to strongly incentivize the relocation of high-tech production to the US and reduce dependence on foreign supply chains in this strategically important sector.
He emphasized that companies that do not participate in establishing or expanding US production facilities risk losing access to the American market on current terms.
The warning comes amid President Trump’s push for economic protectionism and a reassessment of trade relations with key partners, particularly in Asia. The White House argues that the US has been overly dependent on imported chips for years, creating risks for national security and the economy.
At the same time, Lutnick noted that companies that have already announced major investments in US production or plan to launch manufacturing on American soil could avoid steep tariffs. For example, Taiwan and the US previously agreed to a significant expansion of semiconductor production in the US, with total investments under these agreements estimated at hundreds of billions of dollars.
The potential imposition of 100% tariffs could have a major impact on the global semiconductor market and increase tensions in US trade relations with Asian countries, where the world’s largest chip manufacturers are based. Analysts warn that such measures could lead to both a redistribution of investments and higher costs across high-tech supply chains.
For context, Donald Trump previously implemented 25% tariffs on countries that continue trading with Iran.
Trump is considering tariffs against countries that oppose his plans to bring Greenland under US control.
