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Seoul Reveals Semiconductor Deal Amid US Tariff Dispute

The South Korean presidential office has confirmed that semiconductor tariffs were definitely part of their finalized trade agreement with the United States. This directly contradicts claims by US Commerce Secretary Howard Lutnick that chip tariffs weren't included in the deal. Officials emphasized that South Korean semiconductors will receive tariff treatment equal to Taiwan's, putting them on competitive footing. The agreement also includes significant Korean investment commitments and maintains existing market access without new agricultural concessions.

Key Points: South Korea Confirms Semiconductor Tariffs in US Trade Agreement

  • South Korea secured equal semiconductor tariff treatment with Taiwan as major competitor
  • Presidential office dismissed US Commerce Secretary's claim about chip tariffs exclusion
  • Agreement includes $350 billion Korean investment and auto tariff reductions
  • South Korea maintained no additional agricultural market access concessions in deal
3 min read

South Korean presidential office says semiconductor tariffs part of deal with US

South Korean presidential office confirms semiconductor tariffs were part of finalized US trade deal, contradicting US Commerce Secretary's claims about market access and tariff levels.

"Regarding semiconductors, the two nations agreed to apply tariffs at levels not less favorable than those applied to Taiwan - Kim Nam-jun"

Seoul, Oct 30

The South Korean presidential office said Thursday semiconductor tariffs were part of a finalised trade deal with the United States, dismissing remarks by US Commerce Secretary Howard Lutnick that chip tariffs were not a part of the agreement.

Presidential spokesperson Kim Nam-jun said that Seoul and Washington clinched an agreement on tariff levels for South Korean semiconductors, although Lutnick said in a social media post that semiconductor tariffs were not part of a trade deal.

"Regarding semiconductors, the two nations agreed to apply tariffs at levels not less favorable than those applied to Taiwan," Kim said. "The outcome of the negotiations can be seen as having secured an equal footing with Taiwan, a major competitor in the semiconductor sector, and reduced uncertainties."

Kim added that the agreement on the US semiconductor tariffs will be reflected in related documents, which are currently under final review, Yonhap news agency reported.

In August, US President Donald Trump announced plans to impose a tariff of about 100 per cent on imports of semiconductors, but the measure has not yet been implemented.

In regard to Lutnick's separate claim that Seoul had agreed to "fully open its market 100 percent," Kim said the South Korean market is "already open to all US products."

"There are no additional changes (on the market access) through this agreement," Kim said.

On Wednesday, Seoul and Washington finalised the agreement on the details of South Korea's $350 billion investment pledge and concluded a trade deal that will lower US tariffs on Korean goods and autos from 25 per cent to 15 per cent.

Kang Hoon-sik, the presidential chief of staff, said Seoul made no concessions to US demands to further open its agricultural market under the trade deal, noting South Korea already opened nearly all of its farm markets under the bilateral free trade agreement with the US.

"A politician's language, by nature, should be interpreted in a political context," Kang said in an interview with broadcaster SBS. "There's no need for us to refute every single comment made for domestic audiences."

Kang said that the controversy will subside once the details of the agreement are disclosed in official documents in a few days, such as a joint fact sheet and memorandum of understanding.

In a separate interview with broadcaster KBS, Kim Yong-beom, the presidential chief of staff for policy, also said the forthcoming fact sheet will include provisions on semiconductors, ensuring South Korean products receive tariff treatment that is not less favorable than that of Taiwan.

- IANS

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Reader Comments

P
Priya S
The conflicting statements between US and South Korean officials show how complex international trade negotiations can be. Hope India takes note of these dynamics while dealing with major economies.
A
Arjun K
Semiconductor industry is crucial for modern economy. Good to see South Korea standing firm on equal treatment with Taiwan. India should also focus on building our semiconductor manufacturing capabilities under PLI scheme.
S
Sarah B
The US Commerce Secretary's contradictory statements are concerning. It shows how trade negotiations can become political tools. India must ensure all agreements are properly documented and transparent.
K
Karthik V
$350 billion investment pledge is massive! South Korea really understands the importance of semiconductors for their economic future. India needs similar strategic focus on critical technologies.
M
Michael C
While I appreciate South Korea's negotiation skills, I'm concerned about the lack of clarity in public statements. Trade deals should be crystal clear to avoid such confusion. Hope India maintains better transparency in our international agreements.

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