Although semiconductors and pharmaceuticals were exempt from the new duties, the solar industry remains vulnerable. While solar modules were not explicitly mentioned in the exemption list, the new tariff structure—10% base rate plus elevated tariffs for “worst offender” countries—could significantly impact Korea's solar manufacturing and export operations, especially in the polysilicon-to-panel value chain.
South Korea is home to several solar supply chain firms that feed U.S. demand. Companies like Hanwha Q CELLS have made substantial investments in U.S.-based facilities to maintain compliance with the U.S. market's evolving trade policies. However, the new tariff could threaten the viability of cross-border sourcing strategies, particularly if raw materials or components originating in Korea fall within the scope of the reciprocal tariffs.
Acting President and Prime Minister Han Duck-soo has directed the Ministry of Trade, Industry and Energy to evaluate the impact on key sectors—including automotive and renewable energy—and pursue aggressive diplomatic engagement. Trade Minister Ahn Duk-geun and Minister Cheong In-kyo are preparing for direct talks with U.S. counterparts, underscoring Korea’s intent to resolve trade disputes through negotiation.
“Korea and the U.S. have built a mutually beneficial relationship through the KORUS FTA,” the Korea Chamber of Commerce and Industry noted, urging both nations to find a resolution grounded in economic cooperation and existing trade frameworks.
Industry analysts suggest that, similar to past actions under the USMCA, the U.S. may adjust the tariff rate downward during the negotiation window, which ends April 9. That outcome could preserve Korean solar exports while avoiding supply disruptions for U.S.-based installers and project developers reliant on Korean components.
The tariff imposition threatens to further fragment the global supply chain for clean energy technologies. With the U.S. simultaneously pushing domestic manufacturing Korean firms could see mounting pressure to localize production in North America—accelerating a trend already in motion.
As countries navigate this evolving landscape, the solar sector—closely linked to U.S.-Korea trade flows—will remain a bellwether. The outcome of the pending negotiations will shape not only the future of bilateral trade but also the speed and resilience of clean energy deployment across both economies.
