Trump vows 100% tariff on chips; Seoul cites most-favored-nation status

The U.S. plans to impose a one-hundred-percent import duty on semiconductor shipments into the American market.

The top office here is playing down the potential impact of the pledged tariff.

Yoon Jung-min reports.

U.S. President Donald Trump continues to ratchet up his tariff pressure, this time, threatening to impose a 100-percent tariff on semiconductors coming into the United States.

"We're going to be putting a very large tariff on chips and semiconductors. But the good news for companies like Apple is if you're building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge."

He was speaking at a White House event on Wednesday where Apple promised to invest an additional 100-billion dollars in the U.S. on top of the previously announced 500-billion dollars.

No specifics were given, though Trump did earlier signal that the levies on chips could come as soon as next week.

With semiconductors being South Korea's second-largest item exported to the U.S., Seoul's top office echoed remarks by Trade Minister Yeo Han-koo that the country will not be treated less favorably than other nations.

"Whether the levies be 100 percent or 200 percent, we have been promised the most-favored-nation status with regard to semiconductors and pharmaceuticals."

Last week, a framework trade deal was reached between Seoul and Washington that lowered the U.S.' so-called reciprocal tariffs on South Korea to 15-percent in exchange for massive investment pledges by Seoul, as well as a promise for the most-favored-nation status on certain sector-specific tariffs.

What lies ahead is how to fill in the details of the deal in time for the face-to-face meeting later this month at the top level involving President Lee Jae Myung and his U.S. counterpart Donald Trump.

Yoon Jung-min, Arirang News.