Lutnick: "We Will Bring Semiconductor Manufacturing Back to the United States"
Howard Lutnick, the U.S. Secretary of Commerce, announced on July 27 (local time) that the United States will announce semiconductor tariff measures based on Section 232 of the Trade Expansion Act within the next two weeks. As semiconductors, along with automobiles, are among South Korea's main export items to the U.S., there is growing concern that if tariffs are actually imposed, Korean companies will be hit directly.
At the site of the U.S.-European Union (EU) summit trade agreement announcement held in Turnberry, Scotland, Lutnick indicated the plan to impose semiconductor tariffs, stating, "This was one of the main reasons why the EU met with President (Donald) Trump to resolve all issues at once."
He emphasized his strong commitment to rebuilding the domestic semiconductor industry, saying, "We will bring semiconductor manufacturing back to the United States."
President Trump, immediately after Lutnick's remarks, said, "Many companies from Taiwan and other countries are coming into the United States to avoid tariffs," and added, "(Ursula) von der Leyen, President of the European Commission, avoided tariffs in a much better, more certain, and profitable way." On this day, he reached a final agreement with President von der Leyen to impose a 15% tariff on all EU imports except for pharmaceuticals, steel, and aluminum. As a result, even if the United States imposes tariffs on semiconductor items in the future, tariffs on EU semiconductors are expected to be capped at 15%.
Section 232 of the Trade Expansion Act, which serves as the basis for the semiconductor tariffs announced by Secretary Lutnick, is a law that allows the president to take import restriction measures, such as tariffs, if the import of specific items is deemed a threat to national security. The U.S. Department of Commerce is currently investigating not only semiconductors but also other strategic items such as pharmaceuticals and copper. Previously, Secretary Lutnick stated that the related investigations would be completed by the end of this month.
If the U.S. does implement tariffs on semiconductors, which are a key export item for South Korea, domestic companies such as Samsung Electronics and SK Hynix are likely to suffer significant losses in the U.S. market. With the U.S. already imposing a 25% tariff on automobiles, the addition of semiconductor tariffs is expected to cause substantial disruption to overall exports to the U.S. The Korean government, currently negotiating tariffs with the United States, is making every effort to lower reciprocal and automobile tariffs to 15%, the same level as those for Japan and the EU.
Meanwhile, Secretary Lutnick announced that the current suspension of reciprocal tariffs applied to trade partners will not be extended beyond August 1.
In an interview with Fox News on the same day, he said, "Tariffs will be imposed immediately starting August 1, and customs will begin the collection process." He added, "Of course, even after August 1, it is possible to continue discussions with President Trump. The president is always willing to listen. Whether he can be satisfied is another matter, but he is willing to negotiate with major economies."
Secretary Lutnick also addressed the issue of the sale of TikTok's U.S. business rights, stating, "President Trump likes TikTok, but he cannot accept a situation where a Chinese company's application (app) is installed on 100 million American smartphones." He added, "TikTok must be acquired by an American company and operated with American technology and algorithms."
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