South Korea-Taiwan Potential Cooperation on U.S. Semiconductor Tariffs: Analysis & Market Impact

South Korea’s trade minister Yeo Han-koo proposed cooperation with Taiwan to secure favorable U.S. semiconductor tariff terms, referencing Taiwan’s ongoing negotiations [1]. Taiwan’s Premier Cho Jung-tai stated no knowledge of such plans but noted the news [2]. Samsung Electronics (005930.KS) and TSMC (TSM) stocks rose 2.69% and 3.48% respectively [0], with the U.S. Technology sector up 2.09% [0]. U.S. officials privately indicated potential tariff delays [1].

1. Strategic Alignment
   : SK’s proposal reflects a move to mitigate U.S. tariff risks by aligning with Taiwan, their top semiconductor rival.
2. Market Sentiment
   : Positive stock gains highlight investor confidence in cooperation reducing tariff impacts.
3. U.S. Leverage
   : The explicit reference to Taiwan in SK’s trade deal suggests U.S. use of competitive dynamics in negotiations.

• Collective Bargaining
  : Cooperation could strengthen SK-Taiwan’s position in U.S. tariff talks [1].
• Market Stability
  : Reduced uncertainty may boost semiconductor sector confidence [0].

• Policy Uncertainty
  : Lack of clarity on Taiwan’s stance and U.S. tariff timeline creates risks [2,1].
• Negotiation Complications
  : Public talks could complicate Taiwan’s direct U.S. negotiations [2].

• Stock Performance
  : Samsung (005930.KS) +2.69% ($99,300), TSMC (TSM) +3.48% ($284.64) [0].
• Policy Benchmark
  : SK’s trade deal links tariff terms to Taiwan’s potential agreement [1].
• Gaps
  : Exact tariff rates, informal Taiwanese talks, and U.S. delay timeline remain unknown [3,2,1]