Taiwan says ‘no information’ on US chip tariff talks with S Korea

Taiwan Premier Cho Jung-tai said the country has “no information” regarding potential US tariffs targeting semiconductors with South Korea and is only holding talks with the US.

His comments follow statements from South Korea’s trade minister suggesting possible collaboration with Taiwan on the tariffs, which are linked to former US President Donald Trump’s economic policies.

US officials have reportedly indicated that the semiconductor tariffs may be delayed.

Cho told lawmakers that Taiwan is discussing tariffs directly with the US and is seeking to reduce a 20% tariff on its exports, although this does not cover semiconductors.

He noted that Taiwan and South Korea compete in high-tech and chip manufacturing but described this as relatively “benign” competition.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Semiconductor tariffs and Section 301 updates

Executive Order 14257 set a 10% reciprocal tariff in April 2025, a tit-for-tat duty that mirrors a partner’s rate, but it excluded semiconductors 1; the U.S. Trade Representative set Section 301 duties on some chips at 50% for 2025 in September 2024 2.
The Office of the United States Trade Representative (USTR) held a hearing on March 11, 2025, on China’s semiconductor push 3, though no action from that probe has appeared in the Federal Register and it remains separate from the 2024 Section 301 hikes 2.
The U.S.-China Kuala Lumpur Joint Arrangement operates under Executive Order 14358 and keeps reciprocal tariffs on People’s Republic of China (PRC) imports suspended until November 10, 2026 4.

Component distributors see openings in classification risk

If Section 301 chip duties expand, electronics distributors will need tools to track Harmonized Tariff Schedule of the United States (HTSUS) codes and country-of-origin rules (which determine where a product is considered made) 5. Misclassification can bring penalties up to four times lost duties plus criminal sanctions 6, boosting demand for compliance software.
Sellers moving integrated circuits in sets or assemblies face hard calls, because tariff rates hinge on whether the set’s essential character (the customs test for what drives a product’s classification) comes from a covered HTSUS line 5.
Foreign trade zone (FTZ) operators can admit semiconductor goods as privileged foreign status (a designation that locks in the duty rate at the time of FTZ admission) 5.