South Korea and Taiwan Explore Cooperation Amid Shifts in US Chip Tariffs

South Korea has signalled that it is open to working closely with Taiwan as both countries navigate the changing landscape of US tariffs on semiconductors. Trade Minister Yeo Han-koo said during a radio interview that Taiwan is already in talks with the US, creating an opportunity for both economies to secure favourable terms by coordinating their efforts. Earlier this month, South Korea finalised a trade agreement with the United States that links reduced tariffs to significant Korean investments in key US industries. Meanwhile, Taiwan’s negotiations with Washington are still underway.

According to the South Korea-US deal, Washington has committed that the tariff terms offered to Seoul will be at least as favourable as any future agreement covering a similar volume of semiconductor trade, an indirect reference to Taiwan, a major competitor in the chip sector. Recent reports also suggest that the US may delay imposing planned semiconductor tariffs, a move that could reshape trade dynamics under President Donald Trump’s economic agenda.

Despite speculation, South Korean officials have not confirmed any formal talks with Taiwan on tariff coordination. Still, the semiconductor sector remains strong, with South Korea’s chip exports to the US rising 51.2% in October to reach $1.2 billion, driven by increasing demand for advanced AI chips.

Source: The Economic Times