Potential Tariff Hike Targets South Korean & Taiwanese Semiconductors

South Korean President Lee Jae Myung warned that proposed U.S. tariffs on semiconductor imports could raise prices due to South Korean and Taiwanese market dominance. Despite safeguards from existing trade agreements, Lee highlighted ongoing FX challenges and diplomatic efforts regarding North Korea's nuclear stance.

South Korean President Lee Jae Myung, speaking at a recent press conference, expressed concerns that proposed U.S. import tariffs on semiconductors could significantly increase domestic prices. This warning comes amid suggestions from U.S. officials of imposing up to 100% tariffs on South Korean and Taiwanese semiconductor industries unless they enhance their American output.

Lee underscored the pivotal role South Korean and Taiwanese companies play, controlling 80-90% of the semiconductor market. He explained that such tariffs would likely push the increased costs onto U.S. consumers. However, he noted that existing trade agreements should mitigate some competitive disadvantages for South Korean producers.

In addition, President Lee addressed economic issues like the waning won currency, predicting a potential rebound against the dollar. He also discussed diplomatic strategies with North Korea, advocating for renewed dialogues to address nuclear proliferation, as previous talks stalled over policy disagreements.