SEOUL, SEOUL, January 15 (AJP) -Jan. 15 (AJP) — The South Korean government moved into emergency response mode Thursday after the White House issued sweeping proclamations under Section 232 of the Trade Expansion Act, targeting semiconductors and critical minerals on U.S. national security grounds.
Minister of Trade, Industry, and Energy Kim Jung-kwan convened an emergency meeting Thursday to review the details of President Donald Trump’s proclamations and map out Seoul’s next steps as Washington signaled a harder line on advanced chips and strategic materials.
Trump on Wednesday (local time) signed a proclamation imposing a 25 percent tariff on certain advanced semiconductors imported into the United States and then re-exported, including Nvidia’s flagship artificial-intelligence processor, the H200. The measure takes effect at 12:01 a.m. EST on Jan. 15.
The action followed a Commerce Department report submitted in late December under Section 232, which concluded that semiconductor imports — including manufacturing equipment and derivative products — pose a threat to U.S. national security by deepening reliance on foreign supply chains.
Under the proclamation, the tariff applies narrowly to advanced computing chips that do not contribute to the build-out of U.S. technology supply chains, while exempting chips used in U.S. data centers, research and development, public-sector applications and other domestic uses. The White House warned, however, that broader tariffs could follow after negotiations with trading partners conclude.
“The President could soon impose more expansive tariffs on semiconductors and their derivative products to encourage manufacturing in the United States,” the White House said in a fact sheet, adding that a tariff-offset program may be introduced for companies investing in U.S. production.
Chairing Thursday’s meeting, Kim reviewed South Korea’s actions since Washington launched its Section 232 investigations, including the submission of written comments to U.S. authorities. He instructed officials to maintain close contact with industry, monitor developments in real time and analyze potential impacts to minimize damage to Korean companies.
Separately, the ministry holds separate industry meetings later Thursday — one on semiconductors and another on critical minerals — to assess exposure and coordinate response strategies with manufacturers.
Kim said the government would maintain “constant readiness” not only for the newly announced Section 232 measures, but also for a pending U.S. Supreme Court ruling on reciprocal tariffs under the International Emergency Economic Powers Act, signaling broader trade uncertainty ahead.
The proclamation has drawn particular attention in Seoul because it explicitly includes Nvidia’s H200 and AMD’s MI325X among the covered products.
Although Nvidia is a U.S. company, its advanced AI chips are manufactured almost entirely by Taiwan Semiconductor Manufacturing Co. (TSMC), meaning they are imported into the United States before being re-exported, placing them squarely within the scope of the tariff.
Trump had previously indicated in December that H200 exports to China would be allowed, while suggesting that 25 percent of the sales value would be paid to the U.S. government — a remark that did not appear in the formal proclamation.
The Commerce Department on Tuesday finalized revisions to export rules allowing limited H200 shipments to China, subject to strict conditions, including a cap tying China-bound volumes to no more than 50 percent of Nvidia’s U.S. domestic sales.
The dual track — easing export controls while imposing Section 232 tariffs — underscores Washington’s attempt to balance national security concerns with preserving the global competitiveness of U.S. chipmakers.
Trump also signed a separate proclamation directing the start of negotiations with trading partners to ensure critical-mineral imports align with U.S. security interests. Depending on the outcome, the Commerce Department and the U.S. Trade Representative could consider measures such as minimum import prices for certain minerals.
Trade minister Yeo Han-koo has put off his return to Seoul to assess potential impact on Korean companies in Washington, the ministry added.
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