The Trump administration is reportedly pressuring South Korean companies to increase their investments in the U.S. by leveraging plans for semiconductor tariffs and the Alaska liquefied natural gas (LNG) project. With dissatisfaction among voters regarding economic policies ahead of the November midterm elections, the administration aims to highlight manufacturing revival and economic achievements through domestic investment.
On September 2, U.S. Secretary of Commerce Gina Raimondo stated in an interview with CNBC that the government is preparing a new system of semiconductor tariffs to attract semiconductor manufacturing facilities to the U.S. She added that companies investing in domestic production would be eligible for tariff reductions.
"If you build a production facility in the U.S., you will receive a tariff reduction, but if you do not produce in the U.S., you will incur tariffs," she said, describing the approach as "quite reasonable" and effective. This method mirrors the strategy used by President Trump to attract production facilities in the pharmaceutical industry.
In January, President Trump imposed a 25% tariff on certain advanced semiconductors imported from third countries, such as NVIDIA's H200 chip, which were then exported to China. However, if the Trump administration announces new semiconductor tariffs, the scope could expand to cover all semiconductors and electronic products, including data centers and electronic devices, according to Bloomberg News.
Last week, Politico reported that the Trump administration is considering imposing high tariffs on semiconductors. The administration is exploring expanding the tariff scope to include products that use semiconductors, such as laptops, gaming consoles, and data center servers, and is also considering a phased introduction of new tariffs.
Raimondo emphasized that the forthcoming semiconductor tariffs would be "targeted and carefully designed," stating, "Essentially, if you build a production facility in the U.S., you will not have to pay tariffs, but if you do not produce in the U.S., you will have to bear tariffs to access the largest market in the world." She noted that all companies are aware of this policy and have been preparing for it, highlighting that major semiconductor firms like TSMC and Micron have already committed to investing a total of $1.2 trillion in the U.S.
Taiwan has pledged $500 billion in investments during tariff negotiations with the U.S., and Raimondo indicated that Taiwan would announce an additional investment of $20 to $30 billion next week. Previously, Taiwan's Minister of Economic Affairs Wang Mei-hua mentioned at the opening ceremony of 'Semicon Taiwan 2026' that Taiwanese companies would invest an additional $20 billion in the U.S.
As a result, it is anticipated that the Trump administration will intensify its investment pressure on South Korean semiconductor companies. While South Korean firms, including SK Hynix, have been making investments in the U.S., such as the recent groundbreaking for a $4 billion high-bandwidth memory (HBM) semiconductor production facility in Indiana, the increased investment commitments from Taiwanese companies like TSMC may prompt calls for further investments from South Korean firms like Samsung and SK Hynix.
Alaska LNG Project
Additionally, President Trump reiterated calls for participation from South Korea and Japan regarding the Alaska LNG project. During a press briefing at the White House, he stated, "Many countries, including Japan and South Korea, are coming to Alaska to load fuel and oil and to build pipelines, among other activities."
Trump's comments came as he announced plans to visit Alaska to support Republican candidate Dan Sullivan, who is running for a third term in the U.S. Senate. Earlier, on January 20, he referenced the Alaska pipeline project aimed at exporting natural gas to Asia while discussing trade agreements between the U.S., South Korea, and Japan.
With two months remaining until the midterm elections and facing low approval ratings, Trump appears to be actively seeking to bolster economic achievements, which may include urging South Korea to expand its investments in the U.S. According to a Reuters/Ipsos poll released on August 31, Trump's approval rating stands at 33%, the lowest level recorded, with dissatisfaction attributed to the Iran war and Republican economic policies.
Fox News noted, "President Trump has so far failed to win over midterm voters with his economic agenda," adding, "If he cannot change this trend, congressional power may shift to the Democrats."
* This article has been translated by AI.
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