US Imposes Tariffs on Foreign Chip Imports

Published on 8.7.25

  The US has imposed a 100% tariff on semiconductors imported from countries not producing in the US or planning to do so, but exempted companies like SK Hynix and Samsung Electronics that have made commitments to manufacture chips in the US. The move is aimed at China, while South Korea's trade envoy confirmed that Samsung and SK Hynix will not be subject to 100% U.S. tariffs due to their Most Favoured Nation (MFN) status under a bilateral trade deal with the US. Taiwanese chip manufacturer TSMC is likely not affected due to its existing US factories. The US has a $52.7 billion semiconductor subsidy program and has convinced top firms to locate chip factories in the country. The agreement is seen as a significant step towards normalizing relations between the two countries, which had been strained due to disagreements over trade policies and security concerns.

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