South Korea Prepares Tailored Countermeasures Ahead of U.S. Supreme Court Decision on Reciprocal Tariffs
Updated (2 articles)
Yeo Han‑koo Highlights Uncertain 50‑50 Supreme Court Vote Trade Minister Yeo Han‑koo told U.S. officials in Washington on Jan. 14 that the Supreme Court’s ruling on the International Emergency Economic Powers Act (IEEPA)‑based tariffs could go either way, describing the odds as roughly 50‑50 [1][2]. He postponed his return to Seoul to assess the potential impact of the Trump administration’s new AI‑chip proclamation. Yeo emphasized that the timing of any decision remains unpredictable, urging close monitoring of developments.
Seoul Plans an “Optimal” Response Tailored to Global Reactions The Korean government said it will watch how other trading partners react and will calibrate its own measures accordingly if the court strikes down the reciprocal tariffs [1][2]. Yeo noted that even a loss could be mitigated by invoking other legal authorities such as Section 301 of the Trade Act of 1974 or Section 338 of the Tariff Act of 1930. Preparations include scenario planning for all possible outcomes and coordination with domestic industry groups.
Trump AI‑Chip Proclamation Adds a 25% Duty on Select Imports The proclamation imposes a 25 percent tariff on AI chips imported into the United States for re‑export, while exempting chips used in U.S. data centers or consumer applications [1][2]. Yeo said Korean chipmakers are evaluating the policy’s impact and that the government is conducting an exhaustive review with the Ministry of Trade, Industry and Energy. The administration may still employ additional tools to collect duties if the IEEPA tariffs are invalidated.
Refund Procedures and Industry Review Remain Complex Analysts warned that a ruling against the reciprocal tariffs could trigger a complicated refund process for affected firms [2]. Seoul is preparing guidelines to manage potential claims and is working with industry associations to assess broader economic effects. The government stresses that conclusions are premature while the AI‑chip policy’s ramifications are still being examined.
Sources
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1.
Yonhap: South Korea to seek an optimal response if US court rules against reciprocal tariffs, Seoul official says – Yeo Han‑koo’s Washington remarks, 50‑50 ruling odds, delayed flight, monitoring partners, possible use of Section 301/338, AI‑chip 25 % tariff, and non‑trade nature of the Coupang probe
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2.
Yonhap: Seoul to seek optimal response if Supreme Court rules against reciprocal tariffs – Focus on IEEPA legality debate, AI‑chip proclamation details, refund complexities, and extensive industry‑government review
Timeline
2025 – The Trump administration signs a proclamation imposing a 25 % tariff on certain AI chips imported into the United States for re‑export, while exempting chips used in U.S. data centers or consumer applications, signaling a broader move toward AI‑related trade barriers [1][2].
Early 2026 – The U.S. Supreme Court begins hearing arguments on the legality of the 1977 International Emergency Economic Powers Act (IEEPA)‑based reciprocal tariffs applied to South Korea, the EU and Japan, a case analysts deem a “50‑50” gamble [1][2].
Jan 14, 2026 – South Korean Trade Minister Yeo Han‑koo speaks in Washington, noting “the court decision could be 50‑50” and saying he will monitor how other trading partners react before shaping Seoul’s response to any ruling [1][2].
Jan 14, 2026 – Yeo delays his return flight to Seoul to assess the potential impact of the new AI‑chip proclamation on Korean chipmakers, underscoring the urgency of the issue for South Korea’s tech sector [1][2].
Jan 14, 2026 – In a meeting with U.S. Trade Representative Jamieson Greer, Yeo stresses that the ongoing Coupang data‑leak investigation proceeds under “fair, transparent principles” and should not evolve into a trade or diplomatic dispute [1].
Jan 15, 2026 – Seoul announces it will prepare an “optimal response” to any Supreme Court outcome, including the possibility of invoking other legal tools such as Section 301 of the 1974 Trade Act or Section 338 of the 1930 Tariff Act if IEEPA‑based tariffs are struck down [1][2].
Late 2026 (expected) – South Korea plans to coordinate with industry ministries and groups to finalize its strategy after the Supreme Court issues its decision, aiming to mitigate refund complexities for firms and to safeguard Korean chip exporters [2].