ISTANBUL

South Korea’s Trade Minister Yeo Han-koo said on Saturday that the US President Donald Trump administration's recent announcement on semiconductor tariffs will have a "limited" impact on local chip makers.

"The first-stage measure announced is focused on advanced chips from NVIDIA and AMD, and excludes memory chips, which are key export products of local companies," Yeo, also the top trade envoy of Seoul, told reporters at Incheon International Airport.

Yeo, however, warned that uncertainties still linger, as Washington could announce a second-stage tariff measure for semiconductors, according to Seoul-based Yonhap News.

He pledged to work closely with local companies to bring about the "best outcome."

His remarks came after Trump signed an executive order late Wednesday imposing a 25% tariff on certain advanced semiconductors, citing national security concerns.

In a fact sheet, the White House said Trump signed a proclamation invoking Section 232 of the Trade Expansion Act of 1962 to address risks associated with imports of semiconductors, semiconductor manufacturing equipment, and derivative products.

The document mentioned that the tariff will apply to selected advanced chips, such as Nvidia’s H200 and AMD’s MI325X, but will not cover chips imported to support the development of the US domestic technology supply chain.

The White House also said Trump may impose broader tariffs on semiconductor imports and their derivatives in the near future and could introduce a tariff-offset program aimed at incentivizing domestic chip production.