South Korea Monitors Trump’s 10% Global Tariff After Court Blocks 15% Duties
Updated (2 articles)
Supreme Court Blocks Trump’s Emergency Tariff Authority The U.S. Supreme Court ruled on Feb. 21 2026 that President Donald Trump could not invoke the International Emergency Economic Powers Act to justify the 15 % reciprocal tariffs, rendering those duties void for all countries, including South Korea [1][2]. The decision specifically rejected the emergency powers claim behind the earlier tariff regime. This ruling forced an immediate policy shift in Washington.
Trump Issues 10% Global Tariff Effective Feb. 24 On the same day as the court decision, Trump signed an order applying a uniform 10 % tariff to all imports under Section 122 of the 1974 Trade Act, set to take effect on Feb. 24 2026 [1][2]. The new “global tariff” replaces the invalidated 15 % duties and covers every trading partner without distinction. The administration framed it as a lawful trade measure following the court’s rebuke.
Seoul Plans Coordinated Response and Investment Bill Push South Korea announced an interministerial meeting led by policy chief of staff Kim Yong‑beom and national security adviser Wi Sung‑lac to monitor U.S. actions and coordinate duty‑refund information with business groups [1][2]. The government will keep the Korea‑U.S. trade dialogue amicable while accelerating a pending National Assembly bill that commits $350 billion in U.S. investment, with a committee hearing scheduled for Tuesday and a plenary vote slated for March 5 [1][2]. Officials aim to protect Korean exporters from refund uncertainties and preserve the broader alliance.
Potential Escalation Remains as Trump Threatens Higher Duties Despite the court’s ruling, Trump warned he could raise “reciprocal” tariffs on autos, lumber and pharmaceuticals to 25 % if Seoul delays the special investment legislation [1]. The threat underscores lingering tension over the $350 billion investment pledge secured in the October trade deal. Seoul’s swift legislative action seeks to avert any further escalation.
Sources
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1.
Yonhap: South Korea to Track New U.S. Global Tariff After Supreme Court Ruling: reports Seoul’s monitoring plan, Supreme Court decision, 10% tariff, interministerial response, and investment bill timeline.
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2.
Yonhap: South Korea to Track U.S. Global Tariff After Supreme Court Ruling: emphasizes government coordination on duty refunds, quotes spokesperson Kang Yu‑jung, and stresses maintaining amicable trade talks while advancing the investment bill.
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Timeline
Oct 2025 – South Korea finalizes a Korea‑U.S. trade agreement that commits Seoul to invest $350 billion in advanced industries and shipbuilding in the United States, laying the foundation for the bilateral economic partnership. [1]
Early 2026 – President Donald Trump imposes 15 % reciprocal duties on South Korean autos, lumber and pharmaceuticals under emergency powers, escalating trade tensions. [1]
Feb 21, 2026 – The U.S. Supreme Court rules that Trump cannot invoke the International Emergency Economic Powers Act to justify the 15 % reciprocal tariffs, nullifying those duties and prompting an interministerial response meeting led by Kim Yong‑beom and Wi Sung‑lac. [1][2]
Feb 21, 2026 – On the same day, Trump signs an order that imposes a uniform 10 % global tariff on all imports, effective Feb 24, citing Section 122 of the 1974 Trade Act and replacing the invalidated 15 % duties. [1][2]
Feb 21, 2026 – South Korean presidential spokesperson Kang Yu‑jung says, “The 15 % tariffs are invalid; the 10 % tariff is now in effect,” and announces that the government will monitor U.S. measures, coordinate duty refunds with businesses, and push the pending investment bill through the National Assembly. [2]
Feb 21, 2026 – The administration warns that Trump could raise “reciprocal” duties on autos, lumber and pharmaceuticals to 25 % if Seoul delays the special investment legislation, underscoring the high stakes of the pending vote. [1]
Feb 22, 2026 – A parliamentary hearing on the special U.S. investment bill is scheduled, where officials will present the refund plan and seek legislative support. [1]
Mar 5, 2026 – The South Korean National Assembly is slated to hold a plenary vote on the $350 billion investment bill, a decisive step for the Korea‑U.S. partnership and a potential lever against further U.S. tariff actions. [1]
2026 onward – South Korea pledges to keep Korea‑U.S. trade talks amicable, continue monitoring any additional U.S. tariff steps, and work with industry groups to provide timely refund information as the global tariff regime unfolds. [1][2]