A 3D-printed miniature model of U.S. President Donald Trump, the South Korea flag and the word "Tariffs" are seen in this illustration taken July 23, 2025. REUTERS
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Firstpost18-01-2026, 10:46

South Korea Downplays Impact of 25% US AI Chip Tariffs

  • South Korea's Trade Minister stated that a 25% US tariff on advanced computing chips would have limited impact on South Korean companies.
  • The tariffs, imposed by US President Donald Trump, target specific AI chips like Nvidia's H200 and AMD's MI325X due to national security concerns.
  • South Korean memory chip exports are currently excluded from these tariffs, leading to an expected limited immediate impact.
  • Trade Minister Yeo Han-koo cautioned against complacency, citing uncertainty about potential future tariff expansions.
  • US Commerce Secretary Howard Lutnick warned that South Korean and Taiwanese chipmakers not investing in the US could face tariffs up to 100%.

Why It Matters: South Korea expects limited immediate impact from US AI chip tariffs, but remains cautious about future expansions.

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