US President Trump formally notified the Japanese and Korean governments on Monday (7th) that he would draw 25% of import taxes on all product classes in the two countries from August 1. The market expects memory industry to be hit hardest, as most of the world's memory is produced in Japan and Korea.
Foreign media Tom’s Hardware pointed out that local American companies such as Micron and Western Digital, their DRAM and 3D NAND chips are also mostly made in Japanese factories, so they will also be affected.
At present, Trump has issued an official letter to Japanese Prime Minister Shigeru Ishiba and Korean President Lee Jae-ming.
However, Japan and South Korea are an important high-tech supply source for the United States, covering products such as automobiles, consumer electronics, crystal manufacturing equipment and semiconductors. High-tech projects imported by the United States from Japan include 3D NAND, advanced chip manufacturing equipment, vehicle electronics, high-precision sensors, steel batteries, medical imaging equipment, microcontrollers and industrial automation equipment, etc.
In addition, Japanese companies such as Canon, Tokyo Vili Technology (TEL), Renesas and SanDisk all provide semiconductor manufacturing and electric vehicles, medical devices and other key components, especially Viten Electronics and SanDisk share the same crystal factory to produce DRAM and 3D NAND. This wave of tax will inevitably cause a major impact. Micron's production of the most advanced DRAM in Japan will also be severely affected.
As for South Korea's main exports, the memory chips of Samsung and SK Hynix, are widely used in consumer electronics, personal computers and AI servers. In addition, South Korea also exports OLED and LCD panels, smart phones, TVs, as well as consumer electronics and vehicle steel batteries. New taxes in the United States may cause confusion in supply chains and rising costs, which will slow down sales of multiple industries.
Trump emphasized that all goods that were transferred to the map in order to evade taxes will be chased to the same tax rate. For example, if Korean companies first send goods to Vietnam and then export them to the United States, labeled as "Made in Vietnam", the United States will be rated for Korean products and 25% tax on courses. It is not yet clear whether Japanese-made or Korean-made chips are installed in China and other countries, and whether new taxes are also applicable.
Finally, Trump warned that if Japan and South Korea report remedial tax increases, the US will simultaneously increase additional taxes. However, if Japanese and Korean companies choose to produce factories in the United States, their products will be exempted from the tax-related measures. The US also promised that the relevant approval process will be completed quickly within a few weeks to help companies implement investment.
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