Monday, July 28, 2025 - South Korea’s major export sectors, automobiles and semiconductors, face growing pressure as the United States moves forward with lower tariff agreements with Japan and the European Union.
On Saturday in Turnberry, Scotland, U.S. President Donald
Trump and European Commission President Ursula von der Leyen agreed to set
mutual tariffs at 15 percent. The deal covers EU exports such as automobiles,
semiconductors, and pharmaceuticals. In exchange, the EU pledged to import $750
billion in American energy and defense equipment and invest an additional $600
billion in the United States.
This follows a similar agreement reached with Japan on July
22. Like the EU, Japan agreed to large-scale energy imports and investments in
exchange for a 15 percent tariff on automobiles, reduced from 25 percent.
With both Japan and Europe securing tariff cuts, South
Korea’s automakers now face a significant competitive disadvantage. If Seoul
does not secure a similar deal, Korean cars could be priced out of the U.S.
market.
Meanwhile, the U.S. is preparing new tariffs on
semiconductors. U.S. Commerce Secretary Howard Lutnick said Washington will
release the results of a national security investigation into semiconductor
imports within two weeks.
Trump has repeatedly signaled plans for steep tariffs on
chips, suggesting they could reach 25 percent or higher. Industry insiders warn
such tariffs would impact the entire supply chain, including products from
Samsung Electronics and SK hynix, as well as wafers, substrates, and production
equipment. Consumer electronics companies that depend on semiconductors for TVs
and smartphones could also be affected.
0 Comments