"Semiconductors are not exempt from tariffs... To be included in item tariffs" - Meritz

Meritz Securities analyzed on the 14th that the notion of semiconductors being exempt from mutual tariffs is not about exempting them from tariffs but rather imposing item tariffs.

Hwang Soo-wook, a researcher at this securities firm, explained, "The announcement on the 11th was a specification of the semiconductor item exemption clause included in the mutual tariff executive order dated the 2nd," and "It specified the scope of the word 'semiconductor' mentioned in the order and clarified that these items are not subject to mutual tariffs."

He added, "The item list includes not only the semiconductor 'chips' we know but also core electronic products such as smartphones and the core value chain of AI hardware (servers, server components)."

Previously, the U.S. Customs and Border Protection (CBP) included smartphones, laptop computers, hard disk drives, computer processors, memory chips, and semiconductor manufacturing equipment in the exclusion list through the 'Notice of Exclusion from Mutual Tariffs on Certain Goods' on the 11th.

However, U.S. Secretary of Commerce Howard Lutnick stated in an interview with ABC on the 13th, "All electronic products such as smartphones and computers will fall under semiconductor products," and "A specially focused type of tariff will be applied to ensure these products can be used safely."

When asked if smartphones or laptops would be temporarily exempt but reimposed in another form a month later, he answered, "Yes."

Secretary Lutnick mentioned the specific timing, saying, "The semiconductor tariffs are likely to be announced in about a month, and pharmaceutical tariffs within one to two months."

U.S. President Donald Trump also mentioned to reporters aboard Air Force One (the presidential aircraft) while traveling from Palm Beach, Florida, to Miami on the 12th about the itemized semiconductor tariffs, "We will be very specific," and "I will give an answer on Monday (the 14th)."

Researcher Hwang said, "The specified items are not subject to mutual tariffs, but it means that 'semiconductor' item tariffs will be imposed on these items later," and "Strategically, semiconductors and pharmaceuticals are important, so these products are not subject to (mutual tariff) negotiations and are given special attention."

Jungdong Noh, Hankyung.com reporter dong2@hankyung.com