(Jan 21): South Korean President Lee Jae Myung downplayed US threats of punishing tariffs on foreign-made chips, while reaffirming his commitment to existing trade agreements.
“There is talk of a 100% tariff on semiconductors, but I’m not seriously concerned about that,” said Lee, 62, during a press conference in Seoul Wednesday. Rhetorical statements sometimes arise during negotiations, but it’s important to stay focused and adhere to established policies and principles. “Rough waves come, but they are not severe enough to damage the ship.”
The comments follow US Commerce Secretary Howard Lutnick’s warning earlier this month that South Korean and Taiwanese chipmakers may face tariffs of up to 100% unless they commit to increased production on American soil. Given the dominant market share held by South Korea and Taiwan, however, such tariffs would likely raise prices in the US and hurt American consumers, Lee said. South Korean memory is used widely in electronic devices, cars, data centres and industrial equipment.
Washington and Seoul previously agreed that South Korea would not be disadvantaged relative to Taiwan regarding chip tariffs, leading Lee to quip, “I am rooting for Taiwan.”
The US and Taiwan reached a trade pact this month that would lower tariffs on goods from the self-governed island to 15% — in line with Japan and South Korea — and have Taiwanese tech companies invest at least US$250 billion (RM1.01 trillion) in the US, backed by an additional US$250 billion in government credit guarantees.
Uploaded by Liza Shireen Koshy
