No tariffs will be applied if chip firm builds U.S. plant during Trump's term: Lutnick

U.S. Commerce Secretary Howard Lutnick on Thursday said semiconductor firms committed to building factories in the U.S. during President Donald Trump's term will not face a tariff.

The comments come after Trump unveiled a plan to impose about a 100 percent tariff on chip imports.

Lee Seung-jae has more.

Semiconductor companies that commit to building chip facilities in the United States during U.S. President Donald Trump's term could be exempt from a proposed 100 percent tariff on chip imports.

Speaking to Fox Business on Thursday, U.S. Commerce Secretary Howard Lutnick clarified that firms must file their commitment with the Commerce Department and be audited throughout the construction process to qualify for the tariff exemption.

The comments come as Trump announced his latest sweeping tariff plan on Wednesday, where he said Washington would impose around 100 percent tariff on semiconductor imports.

He cited national security concerns under Section 232 of the Trade Expansion Act of 1962, while hinting at broader sector-specific tariffs to be announced in the coming week.

The announcement has drawn close attention from South Korean tech giants Samsung Electronics and SK hynix.

South Korea's top trade envoy, Yeo Han-koo, said Thursday that both companies would avoid the full 100 percent tariff under the current Seoul-Washington trade deal, adding that South Korea would receive the most favorable chip tariff rates of any country.

This is because Samsung has already invested in two fabrication plants in Texas, while SK hynix plans to open an advanced chip packaging and AI R&D facility in Indiana.

However,.. there are doubts whether SK hynix's packaging plant alone would fully qualify for tariff exemptions, while Samsung, on the other hand, could benefit from not only the two fabrication plants, but also news that it has joined Apple's supply chain.

Lee Seung-jae, Arirang News.