Washington presses chipmakers to build in US or face tariffs
Under a $350bn agreement, South Korea won a clause promising tariff terms "no less favourable" than competitors, but Washington is nonetheless pressing for American chip factories and has signalled targeted tariffs. Commerce secretary Howard Lutnick framed the US stance as a build-or-pay choice for chipmakers. The dispute centres on Samsung and SK Hynix, the two largest memory producers, whose production economics favour large Korean fabs and who supply memory for US AI data centres. Talks link semiconductor investment to other bilateral issues, like a submarine programme, and no new tariff rates or additional US investment figures have yet been published.
South Korea's deal guarantees tariff parity but not exemption.
Context
The two presidents agreed on a $350bn pledge for US manufacturing investment. The deal includes a parity clause on tariffs. Talks could lead to tariffs or more US investment, and they may affect other defence discussions.
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