SK Won Falls on US Chip Tariff Uncertainty

The South Korean won edged down to around 1,386 per dollar on Friday, paring gains from earlier in the week amid lingering concerns about evolving US trade policy. The move followed comments by US Commerce Secretary Howard Lutnick, who stated that semiconductor firms establishing domestic fabrication plants during President Trump’s term, subject to regulatory oversight, may qualify for exemption from the proposed 100% import tariff. In a trade deal with Korea, the Trump administration granted Seoul most-favored-nation (MFN) status for semiconductors but did not specify tariff rates. While the designation suggests preferential treatment, investor caution remains elevated due to vague implementation and compliance parameters. The lack of specificity has left markets uncertain about the potential impact on Korean chipmakers’ exports to the US, especially against the backdrop of ongoing geopolitical and supply chain risks.