The South Korean government pledged to exert maximum effort in addressing the increasing trade uncertainties following the ruling by the US Supreme Court invalidating President Donald Trump's extensive "reciprocal" tariffs imposed on South Korea and other trade allies.
It emphasized that the export terms established in its trade agreement with the US are expected to remain largely unaffected. This commitment is indicative of the government's proactive stance in navigating the evolving global trade landscape.
Also Read: Indonesia Gains 1,819 Tariff Lines US Duty Exemptions: Minister
Officials stated that an emergency meeting was called by the Ministry of Trade, Industry and Resources to evaluate the consequences of the judgment and deliberate on Seoul's approach to the tariff policies of the Trump administration.
The decision was made following a ruling by the US Supreme Court against President Trump's utilization of the 1977 International Emergency Economic Powers Act (IEEPA) as the basis for implementing tariffs, including those of a reciprocal nature, on Friday (U.S. time).
This ruling supported a previous decision made by a lower court. After losing the legal battle, Trump proceeded to sign a proclamation implementing a 10 percent global tariff and pledged to implement additional tariff measures through various legal avenues.
The ministry has stated that it is actively developing strategies to address the expected outcomes of the ruling, and is committed to ongoing initiatives that will help reduce any potential risks for Korean businesses involved in export activities.
Despite the ruling creating more ambiguity regarding exports to the US, the general export conditions guaranteed by the Korea-U.S. tariff agreement will largely remain unchanged," stated Industry Minister Kim Jung-kwan. Kim mentioned that the government intends to conduct a thorough examination of the ruling's specifics and the subsequent actions taken by Washington.
The aim is to retaliate with maximum intensity to effectively protect Korea's national interest. The Ministry plans to develop support measures to mitigate the impact on Korean companies in response to the ambiguity surrounding the tariff refund matter in the US ruling.
Also Read: Samsung to Lead High-Performance Tier in Nvidia Dual-Binning
The ministry is intending to convene a meeting with private sector entities on Monday in order to evaluate the implications of the most recent developments on domestic businesses. Experts in this country have indicated that Korea may encounter challenges in initiating negotiations to modify the terms of its trade agreement with the US, even in the midst of evolving circumstances.
Seoul has been facing increased pressure to accelerate the execution of its trade agreement with the United States, as President Trump has issued threats to raise tariffs and auto duties on Korea to 25 percent if Seoul fails to pass legislation to fulfill its investment commitments. In October, an agreement was reached in which Korea committed to investing a total of $350 billion in the United States for collaboration in advanced industries and shipbuilding.
Cho Seong-dae, who leads the Trade Policy Research Office at KITA, explained that the US has the ability to levy further industry-specific tariffs at any moment utilizing various legal provisions, including Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974.
Also Read: Thailand Ready for US Tariff Talks: Suphajee Suthumpu
He emphasized that the Trump administration may implement more robust tariff actions in lieu of reciprocal tariffs, creating a heightened level of uncertainty for Korean enterprises. Cho emphasized that the matter concerning tariff refunds is complex and cannot be viewed as a simple issue, emphasizing that the eligibility for filing a refund varies depending on the specific trade agreement and the process involved is intricate.