US chip tariff: South Korea says limited immediate impact, warns of ‘phase 2’

South Korea’s trade ministry has responded to the Trump administration’s new trade policy wherein the company has imposed 25% tariff on advanced computing chips. The country’s trade minister has said that the tariffs will have a “limited impact” on the country’s tech giants – for now. According to news agency Reuters, South Korea’s Trade Minister Yeo Han-koo noted that since the current measures focus on logic chips rather than the memory chips that dominate South Korea’s exports, the immediate financial blow is cushioned.

“Since the memory chips that South Korean companies mainly export are currently excluded, the immediate impact is expected to be limited,” Minister Yeo said.