South Korea says US trade deal still intact after Trump tariff ruling
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Industry Minister Kim Jung-kwan (left) held an emergency meeting on Feb 21 to assess the decision
PHOTO: EPA
South Korea said a US Supreme Court ruling striking down tariffs imposed under US President Donald Trump’s emergency powers would not derail its broader trade agreement with Washington.
Industry Minister Kim Jung-kwan held an emergency meeting on Feb 21 to assess the decision, which found tariffs imposed under the International Emergency Economic Powers Act unlawful. The ruling renders void the 15 per cent reciprocal tariff currently applied to Korean goods, the Ministry of Trade, Industry and Resources said in a statement.
“Although the ruling has heightened uncertainty over exports to the US, the overall framework of export conditions secured under the Korea-US tariff agreement will remain intact,” Mr Kim said, pledging a full-scale response to protect national interests and Korean companies.
Sectoral tariffs on automobiles and steel, imposed under separate laws, remain in place, and are unaffected by the court’s decision, the ministry said.
The Trump administration separately announced a 10 per cent global tariff under Section 122 of the Trade Act, adding a new layer of uncertainty. Seoul said it would closely monitor Washington’s follow-up measures, while continuing talks on the implementation of last year’s trade agreement.
The ruling comes against an already fragile tariff backdrop between Seoul and Washington. The US imposed a 15 per cent tariff on Korean imports, including autos, under a deal that features a $350 billion (S$443 billion) investment commitment. Mr Trump last month also warned of a possible tariff increase, citing delays in Korean legislation needed to implement the pledge.
The presidential Blue House said it would comprehensively review the court ruling and the US government’s position, and would proceed in a direction that best serves the national interest.
Seoul said it would monitor US developments on potential refunds of the now-voided reciprocal tariffs and work with business groups to support affected companies. BLOOMBERG
