The U.S. government’s announcement regarding Section 232 of the Trade Expansion Act, which concerns semiconductors and critical minerals, has prompted an urgent review by South Korean officials.
On Thursday, the Ministry of Trade, Industry and Energy held an emergency meeting chaired by Minister Kim Jeong Kwan to examine the key aspects of the U.S. measures. The ministry immediately began follow-up actions, including analyzing the impact on industry and initiating discussions with U.S. counterparts.
The emergency strategy meeting, convened at 9 a.m., focused on reviewing the key points of the White House’s proclamation under Section 232 of the Trade Expansion Act regarding semiconductors and critical minerals. The session included key officials, including the Deputy Minister for Trade, the Director of Advanced Industry Policy, the Director of Resource Industry Policy, and the Commercial Attaché from the South Korean Embassy in Washington, D.C. (via phone).
On Wednesday, the White House proclaimed under Section 232 of the Trade Expansion Act. This declaration aims to regulate imports of semiconductors, semiconductor manufacturing equipment, and processed critical minerals, along with their derivatives. The announcement followed a report from the U.S. Department of Commerce on the national security implications of semiconductor imports, as required by Section 232.
Section 232 of the Trade Expansion Act provides the legal framework for the president to impose tariffs or other import restrictions if certain imports are deemed to threaten national security.
According to a White House fact sheet, U.S. President Donald Trump has the authority to impose broader tariffs on imports of semiconductors and related products to encourage domestic manufacturing. The administration can also introduce corresponding tariff offset programs.
President Trump also signed a proclamation directing negotiations with trading partners to ensure critical mineral imports align with U.S. security interests.
Minister Kim reviewed South Korea’s responses to the Section 232 investigations on semiconductors (initiated April 1) and critical minerals (initiated April 22), including opinion papers submitted on May 6 and May 15, respectively. He instructed monitoring the situation continuously, maintaining close communication with industry leaders, thoroughly analyzing potential impacts, and taking all necessary measures to minimize effects on South Korean industries.
In this context, the Deputy Minister for Trade scheduled a call with Jeffrey Kessler, U.S. Deputy Secretary of Commerce, at 11:30 a.m. to convey South Korea’s stance on the Section 232 announcements and gather more specific information.
The ministry also planned afternoon meetings with industry representatives. The Director of Industrial Growth will lead discussions on the semiconductor sector, while the Director of Resources will focus on critical minerals. These sessions aim to assess the impact of U.S. measures and formulate response strategies.
Minister Kim emphasized that, in light of the recent Section 232 measures and the potential for a U.S. Supreme Court ruling on mutual tariff measures under the International Emergency Economic Powers Act (IEEPA), South Korea will maintain readiness for various scenarios. He pledged to respond more thoroughly and swiftly to future trade issues with the United States.