Trump Administration Semiconductor Tariff 2026: Separate Deals for Separate Countries

The handshake is individual, and the terms aren't universal. The Donald Trump administration's recent chip tariff deal with Taiwan won't serve as a one-size-fits-all template. Instead, the U.S. will pursue tailored negotiations with each trading partner, forcing nations like South Korea to prepare their own bargaining chips.

Trump Administration Semiconductor Tariff Strategy: Bilateral Leverage

On January 16, 2026, a U.S. official confirmed to Yonhap News Agency that the government will seek "separate agreements for separate countries." This clarifies that the Taiwan agreement—which allows companies building U.S. capacity to import up to 2.5 times their planned output duty-free—isn't a guaranteed standard for others.

The Taiwan Precedent: Duty-Free Quotas

Under the current U.S. Commerce Department framework, Taiwanese firms receive specific exemptions based on their commitment to American soil. Once a project is completed, they can still import 1.5 times their U.S. production capacity without paying sectoral duties. This "investment-for-exemption" model is expected to be the starting point for future talks with other chip-heavy economies.

National Security and the 25% AI Chip Levy

The urgency stems from President Trump's recent proclamation imposing a 25% tariff on certain semiconductors for Artificial Intelligence (AI). Invoking Section 232 of the Trade Expansion Act of 1962, the administration treats semiconductor supply chains as a matter of national security, granting the President broad authority to adjust import levels.