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South Korea Seeks Favorable Tariff Terms from US Amid Rising Chip Trade Tensions

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South Korean semiconductor facility representing efforts to negotiate favorable US tariff terms on memory chips.
South Korea Moves to Negotiate US Tariff Terms on Memory Chips

Seoul, South Korea | January 18, 2026

South Korea will seek favorable tariff terms from the United States on memory chip imports, a presidential office spokesperson announced on January 18, amid escalating trade tensions under the Trump administration. Washington has recently signaled the possibility of broad tariffs, raising concerns across global technology supply chains.

Protecting a Critical Tech Sector

South Korea is home to semiconductor giants Samsung Electronics and SK Hynix, two of the world’s largest memory chip producers. Officials said the government is exploring options that may include:

  • Tariff exemptions

  • Reduced tariff rates

  • Special carve-outs for strategic tech products

The goal, they noted, is to shield the country’s semiconductor sector — a critical foundation for AI technologies, consumer electronics, and data infrastructure.

Global Chip Market Faces Rising Pressure

The announcement underscores growing anxiety across the global chip market as governments implement protectionist trade measures. Industry analysts warn that broad US tariffs could:

  • Disrupt semiconductor supply chains

  • Increase production and export costs

  • Slow innovation in AI, servers, and mobile devices

  • Trigger retaliatory trade moves from affected nations

The South Korean government did not cite any specific leaders involved in the upcoming negotiations but emphasized that talks will prioritize national economic stability.

A Key Issue in US–South Korea Relations

Trade pressures tied to the chip industry come at a time when countries worldwide are working to secure reliable semiconductor supplies following years of shortages.

Experts say South Korea’s negotiating strategy could influence how other chip-exporting nations respond to US tariff policies.

Further discussions between Seoul and Washington are expected in the coming weeks.