Trump-era tariffs could boost Korea’s AI appeal

The cost of artificial intelligence development and semiconductor plant construction in the United States could increase by more than 25% due to renewed tariffs, creating new investment opportunities for South Korea, a U.S. expert said Tuesday.

Martin Chorzempa, a senior fellow at the Peterson Institute for International Economics, shared the projection during the Korea-U.S. Industrial Cooperation Forum hosted by the Korea Chamber of Commerce and Industry.

“Trump’s tariffs will raise the cost of raw materials and components, and that will inevitably harm U.S. industries,” Chorzempa said. “As the cost of AI development and semiconductor construction climbs, companies may see South Korea as a more attractive option.”

The forum, co-hosted annually by the chamber and the Korea-America Association since 2021, brings together experts from both countries to explore opportunities for bilateral cooperation. Organizers moved this year’s event from its usual September slot to April, citing fast-changing political and economic conditions.

“South Korea’s manufacturing capabilities, paired with the United States’ technological leadership, can create strong synergy under President Trump’s ‘Made in U.S.A.’ initiative,” said Choi Joong-kyung, chairman of the Korea-America Association.

Shipbuilding and defense cooperation also featured prominently. Robert Peters, a senior fellow at the Heritage Foundation, pointed to rising demand for maintenance of aging U.S. naval vessels and a lack of shipyard capacity, which is causing delays in new ship construction.

“Collaboration with South Korea in maintenance, repair and overhaul would help ease pressure on U.S. shipyards,” Peters said. He also called for the repeal of the Jones Act, which restricts cargo shipping between U.S. ports to American-built, -owned and -operated vessels.

About 120 experts and business leaders attended the forum, including South Korea’s First Vice Minister of Trade, Industry and Energy Park Sung-taek and AMCHAM Korea Chairman James Kim.


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