South Korea states that the US-Korea trade agreement remains valid, and the Supreme Court's tariff ruling has not altered the framework

The South Korean government stated that despite the U.S. Supreme Court’s ruling on tariffs, the overall framework of the Korea-U.S. trade agreement will remain intact. This statement aims to stabilize market expectations and ease exporters’ concerns about trade prospects.

According to CCTV News, on Friday the 20th local time, the U.S. Supreme Court ruled that the relevant large-scale tariffs implemented by the Trump administration under the International Emergency Economic Powers Act (IEEPA) lacked clear legal authorization. Reportedly, this ruling invalidates the current 15% reciprocal tariffs on Korean goods.

On Saturday, Minister of Trade, Industry, and Energy Jin Dong-gwan held an emergency meeting to assess the impact of the Supreme Court’s decision. Jin Dong-gwan stated:

Although the ruling increases uncertainty regarding exports to the U.S., the overall framework of the export conditions guaranteed under the Korea-U.S. tariff agreement will remain unchanged.

He pledged to take comprehensive measures to protect national interests and Korean companies. The Korean government also stated that the targeted tariffs on the automobile and steel industries remain in effect and are not affected by the Supreme Court’s ruling.

Trump Administration Imposes New Global Tariffs

Following the Supreme Court’s decision, the Trump administration announced separately that it would impose a 10% global tariff under Section 122 of the Trade Act.

South Korea has committed to closely monitoring subsequent U.S. measures, continuing dialogue on the implementation issues of the trade agreement signed last year, and providing support to affected enterprises.

Analysts believe that at the time of this ruling, the tariff relationship between Korea and the U.S. was already very fragile.

According to an agreement with a commitment of $350 billion in investments, the U.S. imposed a 15% tariff on Korean imports, including automobiles.

Last month, Trump also warned that tariffs might be increased due to slow progress by South Korea in implementing the necessary legislation to fulfill this commitment.

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