WASHINGTON – The U.S. Supreme Court on Friday invalidated former President Donald Trump’s “reciprocal” tariffs imposed on imports from numerous countries, including South Korea, a decision swiftly followed by the Trump administration’s announcement of a new 15% global tariff on all imports. The move has injected fresh uncertainty into the global trade landscape and prompted an emergency response from Seoul.
The Supreme Court’s 6-3 ruling, a rare rebuke of a core tenet of Trump’s economic policy, found that the tariffs – levied under the International Emergency Economic Powers Act (IEEPA) – exceeded the scope of the law. The tariffs were initially imposed in response to what the Trump administration characterized as unfair trade practices by other nations. While South Korea had been subject to a 10% reciprocal tariff, which was later raised to 15%, the immediate impact of the court’s decision appears limited as the new global tariff mirrors the previous rate.
Despite the court’s action, Trump signaled his intent to maintain a protectionist trade stance. In a post on his social media platform, Truth Social, on Saturday, Trump announced the 15% global tariff, stating it was “fully allowed, and legally tested.” He also criticized the justices who ruled against his earlier tariffs, calling them a “disgrace to our nation,” according to CNN reporting.
The newly imposed tariff, authorized under Section 122 of the 1974 Trade Act, is initially set to last for 150 days, pending congressional approval for an extension. The administration has also indicated it may explore the use of Section 232 of the Trade Expansion Act, which allows for tariffs on imports deemed a threat to national security, and Section 301 of the Trade Act, which authorizes retaliatory measures against countries accused of unfair trade practices. Section 232 has previously been used to impose tariffs on steel and aluminum, and could potentially be extended to other sectors, such as semiconductors or pharmaceuticals.
The potential application of these alternative tariff mechanisms is of particular concern to South Korea, which consistently ranks among the largest contributors to the U.S. Trade deficit, according to analysis from the Korea JoongAng Daily. Seoul is bracing for increased scrutiny and potential retaliatory measures.
In response to the evolving situation, South Korean government ministers convened an emergency meeting on Saturday to assess the Supreme Court ruling and the newly announced tariffs. The Foreign Ministry stated that leaders of “relevant ministries” would review the developments and discuss potential strategies. The South Korean government is accelerating procedures for implementing investment commitments made to the United States, including legislation related to a special investment framework.
Japan has similarly reaffirmed its commitment to a $550 billion investment package in the United States, signaling a regional preference for continuity despite the uncertainty. The South Korean government is reportedly considering the implications of altering a previously agreed $350 billion investment package in the United States, fearing it could trigger further retaliation. Concerns also exist that broader strategic agreements, including cooperation in advanced nuclear technologies, could be jeopardized if bilateral trust erodes.
The situation underscores the need for a coordinated approach from South Korea’s ruling and opposition parties to ensure that agreed-upon investment initiatives proceed without disruption, as the two nations navigate what may become a prolonged period of trade friction.
