The South Korean Ministry of Industry reported increased uncertainty in exports to the US following a Supreme Court ruling that deemed the imposition of reciprocal tariffs by the Trump administration illegal, pledging to minimize this uncertainty through proactive measures.
The South Korean Ministry of Industry has responded to a recent ruling by the US Supreme Court, which found that the reciprocal tariffs imposed during Donald Trump's administration were illegal. This decision has heightened uncertainties surrounding South Korea's exports to the US, as the Ministry noted that the 15% reciprocal tariff currently levied against South Korea is now deemed null and void. The Ministry held an emergency strategy meeting to address the implications of this ruling and to develop a plan to minimize uncertainty for Korean exporters. They emphasized that tariffs imposed under different laws, such as the Trade Expansion Act on automobiles and steel, remain unaffected by this ruling.
In the wake of the Supreme Court's ruling, the US administration immediately announced a global 10% tariff under Section 122 of the Trade Act, prompting concerns about potential new trade barriers that could affect South Korean exports. The Ministry indicated that it would continue to monitor US actions closely and is committed to facilitating friendly negotiations with US counterparts to ensure compliance with existing trade agreements and minimize any adverse effects on Korean industries. Another joint public-private meeting is scheduled to discuss the impacts of these developments across various sectors on the 22nd, with a focus on formulating strategic responses.
The Ministry also highlighted the need for proactive support mechanisms to safeguard South Korean businesses from potential damages resulting from these uncertainties, particularly in light of the Supreme Court ruling's implications for tariff refunds—a topic that was not explicitly addressed in the ruling. Minister Kim emphasized that while the ruling introduces some uncertainties into the export landscape to the US, the overall conditions established by the Korea-US tariff agreements would remain intact, and the government would comprehensively assess the ruling's impact alongside US responses and international trends to best protect national interests and support local businesses.
