Lee downplays US threat of 100% semiconductor tariffs

President Lee Jae Myung receives questions from reporters at Cheong Wa Dae on Wednesday. (Yonhap)

President Lee Jae Myung said Wednesday he is not overly concerned about warnings of a possible 100 percent US tariff on semiconductors, describing such remarks as part of routine trade pressure that tends to surface during periods of heightened uncertainty.

Speaking at a New Year's press conference at Cheong Wa Dae, Lee addressed growing concerns over US-led tariff threats, saying, "There has been talk of imposing a 100 percent tariff on semiconductors, but I do not view it as something to be taken too seriously."

He added that in "intense confrontational and unstable phases," unexpected variables often emerge, cautioning that "if we react too strongly to each individual issue, we lose our sense of balance."

His remarks were made during a question-and-answer session with reporters.

Referring to Taiwan, Lee said Seoul is already prepared for such scenarios, adding that "we have already reached agreements to ensure that South Korea will not be placed at a disadvantage compared to Taiwan in such cases."

He cited the joint fact sheet agreed upon at last year's South Korea-US summit, saying it established "commercial reasonableness" as the most important standard guiding South Korea's trade engagement with the US. "When we do something, ensuring commercial viability will be the most important criterion," he said.

Lee stressed the importance of what he called "pragmatic, national interest-centered diplomacy," saying the current global trade environment makes such an approach more critical than ever. "The tariff issue is only one part of a much broader picture," he said.

The president said the US faces mounting internal challenges, including fiscal and trade deficits, domestic polarization and the decline of manufacturing, prompting Washington to take measures that "inevitably translate into pressure on other countries."

"We have been significantly affected by this and, as a result, have had no choice but to engage in prolonged tariff and trade negotiations," Lee said, characterizing past talks as efforts "not to gain benefits, but to give up as little as possible."

Lee's remarks came amid escalating rhetoric from Washington. US Commerce Secretary Howard Lutnick on Friday issued a blunt ultimatum to global chipmakers, saying, "Everyone who wants to build memory has two choices: They can pay a 100 percent tariff, or they can build in America."

While no country was explicitly named, few in Seoul doubted that the comments were aimed at major Asian semiconductor producers, including South Korea.