What Washington's tariff push means for Korea's semiconductor industry

U.S. Commerce Secretary Howard Lutnick's recent comments on semiconductor tariffs reveal a clear message: manufacture in America and you won't face tariffs. Otherwise, expect to face tariffs when trying to enter the "greatest market in the world." Lutnick also drew parallels to the administration's pharmaceutical approach, imposing 100% tariffs on patented drugs, followed by the same percentage on generic drugs after two years, and even higher at 200% after three years.

The strategy is simple: apply tariffs at a level high enough to incentivize companies to relocate production to the United States.

For Korea's semiconductor industry, the question becomes less about whether Washington intends to use tariffs as leverage and more about how far they are willing to go. With four decades of experience in trade and tariff litigation, I have witnessed how swiftly a government commitment can transform into a legal predicament. The current situation confronting Samsung, SK Hynix, and Korea's broader semiconductor industry threatens to escalate in a similar manner.

The 25% tariff on semiconductor imports from South Korea, among other countries, has already sparked concerns within the industry. Should this be the first step in a broader tariff escalation, the repercussions could be severe for the Korean semiconductor sector. The stakes are high, and the potential for legal complications increases as the situation unfolds.