Washington, Aug 8 (SocialNews.XYZ) If a semiconductor firm commits to building its factory in the United States during President Donald Trump's term and fulfills the commitment, its chips would not face a tariff, the commerce secretary said, a day after Trump unveiled a plan to impose about a 100 per cent tariff on chip imports.
Secretary Howard Lutnick made the remarks during a Fox Business interview as South Korean tech firms, Samsung Electronics and SK hynix have been carefully watching his tariff policy developments, reports Yonhap news agency.
"So (what) the president said is if you commit to build in America during his term, and if you file it with the Commerce Department and if your auditor oversees you building it all the way through, then he will allow you to import your chips -- while you are building -- without a tariff," he said.
"But you have to be confirmed and overseen building in America," he added.
Trump's announcement on the new tariff came after he said Tuesday that his administration plans to announce sector-specific tariffs "within the next week or so."
Some observers raised the possibility that Samsung Electronics and SK hynix could avoid the new tariff as they have been working on their investment plans in Texas and Indiana, respectively.
To impose the tariff on semiconductor imports, Trump has invoked Section 232 of the Trade Expansion Act of 1962, a law that provides the president with the authority to adjust imports into the U.S. when he determines they threaten to impair national security.
Meanwhile, Seoul shares extended losses late Friday morning following a mixed close on Wall Street as uncertainties surrounding U.S. import tariffs weighed on investor sentiment.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 12.80 points, or 0.4 percent, to 3,214.88 as of 11:20 a.m.
Overnight, the Dow Jones Industrial Average dropped 0.51 percent to 43,968.64, while the tech-heavy Nasdaq Composite rose 0.35 percent to 21,242.70.
Among gainers, tech giant Samsung Electronics rose 1.84 percent, and its chipmaking rival SK hynix climbed 0.19 percent. Samsung shares extended gains for a second straight session following reports that the company will manufacture Apple Inc.'s next-generation processor at its foundry in Austin, Texas.
—IANS
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Source: IANS
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