Lutnick: "We Will Bring Semiconductor Production Back to the United States"
Howard Lutnick, the U.S. Secretary of Commerce, announced on the 27th (local time) that semiconductor tariff measures based on Section 232 of the Trade Expansion Act will be announced within the next two weeks. As semiconductors, along with automobiles, are among Korea’s main export items to the United States, there are growing concerns that if tariffs are actually imposed, Korean companies will be hit hard.
At the site of the U.S.-European Union (EU) summit trade agreement announcement held in Turnberry, Scotland, Lutnick indicated the intention to impose semiconductor tariffs, stating, "This is precisely 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 production back to the United States."
Immediately following Secretary Lutnick’s remarks, President Trump stated, "Many companies from Taiwan and other countries are entering the U.S. 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 and steel·aluminum. As a result, even if the U.S. imposes tariffs on semiconductor products in the future, the tariff cap for EU semiconductors is expected to be limited to 15%.
Section 232 of the Trade Expansion Act, which Secretary Lutnick cited as the basis for the anticipated semiconductor tariffs, is a law that allows the President to take import restriction measures, such as tariffs, if the import of certain items is deemed a threat to national security. The U.S. Department of Commerce is currently conducting investigations not only into semiconductors but also into strategic items such as pharmaceuticals and copper. Previously, Secretary Lutnick stated that these investigations would be completed by the end of this month.
Semiconductors are a key export item for Korea, and if the U.S. actually imposes tariffs, domestic companies such as Samsung Electronics and SK Hynix could suffer significant losses in the U.S. market. Given that the U.S. is already imposing a 25% item tariff on automobiles, the addition of semiconductor tariffs would inevitably cause considerable disruption to overall exports to the U.S. The Korean government, currently engaged in tariff negotiations with the U.S., is making every effort to lower reciprocal tariffs and automobile tariffs to 15%, the same level as Japan and the EU.
Meanwhile, Secretary Lutnick announced that the reciprocal tariff suspension measures currently applied to trading partners will not be extended after August 1.
In an interview with Fox News on the same day, he said, "From August 1, tariffs will be imposed immediately and customs will begin collection procedures." However, he added, "Of course, even after August 1, dialogue with President Trump is possible. The President is always willing to listen. Whether he can be satisfied is another matter, but the President is willing to negotiate with major economies."
Secretary Lutnick also addressed the issue of the sale of TikTok’s U.S. operations, a Chinese video-sharing platform, stating, "President Trump likes TikTok, but it is unacceptable for a Chinese company’s application (app) to be installed on 100 million U.S. smartphones." He added, "TikTok must be acquired by a U.S. company and operated with American technology and algorithms."
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