South Korea Seeks 'No Less Favorable' Terms Amid Trump’s 25% AI Chip Tariffs

A 25% tariff wall has just gone up. President Donald Trump's latest proclamation targeting artificial intelligence semiconductors has sent South Korean trade officials into a sprint to protect the nation's most vital industry.

Navigating Trump’s 25% AI Semiconductor Tariff Proclamation

According to Yonhap on January 18, 2026, South Korea plans to consult with Washington to minimize the fallout from a new 25% tariff on AI-related semiconductors. President Donald Trump recently signed a proclamation for tariffs on certain chips imported to the U.S. and then re-exported. The White House hasn't ruled out broader tariffs on derivatives, heightening industry anxiety.

Seoul is leaning on a bilateral principle of "no less favorable" treatment. This principle, agreed upon last year, suggests South Korea shouldn't face harsher conditions than other major allies. The move is a direct response to a recent deal between the U.S. and Taiwan, which features a lower 15% reciprocal tariff in exchange for massive direct investments totaling US$250 billion.

Limited Immediate Impact, Looming Uncertainty

Trade Minister Yeo Han-koo noted the current impact on local chipmakers is "limited," yet he warned that a "second-stage" tariff measure could be on the horizon. The presidential office is now gathering feedback from major semiconductor players to prepare for the upcoming negotiations in Washington.