Supreme Court Nullifies Reciprocal Tariffs; Trump Sets 10‑15% Global Tariff, Korea Investment Unchanged
Updated (4 articles)
Court Ruling Declares Reciprocal Tariffs Unlawful Under IEEPA The U.S. Supreme Court on Feb 21 ruled that President Trump’s 15 % reciprocal duties violated the International Emergency Economic Powers Act because tariff authority resides with Congress. The decision declared the tariffs unlawful and immediately nullified the duties imposed on South Korea and other trading partners. The Court’s opinion emphasized that only Congress may impose such taxes, overturning the administration’s emergency‑power justification. [1][2][3][4]
Trump Issues 10% Global Tariff Effective Feb 24 Later that day Trump signed an order under Section 122 of the 1974 Trade Act imposing a uniform 10 % tariff on all imports. The order permits the rate to rise to the statutory ceiling of 15 % and to remain in effect for up to 150 days without congressional approval. Congress could extend or modify the tariff after that period, giving the administration flexibility to cite unfair trade practices. [1][2][3][4]
South Korea’s $350 B Investment Commitment Remains Intact Seoul reaffirmed that the October 2025 Korea‑U.S. agreement committing $350 billion in advanced‑industry and shipbuilding investment remains unchanged. The government scheduled a National Assembly hearing on the related investment bill for Tuesday and set a plenary vote for March 5. Officials pledged to maintain close consultations with Washington and to keep trade talks constructive despite the tariff shift. [1][3][4]
Risk of Higher Product‑Specific Duties Looms for Korean Exporters Existing product‑specific duties already target automobiles at 15 % and steel at 50 %. The administration warned it could raise tariffs on autos, lumber and pharmaceuticals to as much as 25 % if the investment legislation stalls. Korean exporters are preparing for possible higher losses and the government is coordinating with industry to provide accurate duty‑refund information. [1][2][3][4]
Sources
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1.
Yonhap: US Supreme Court voids reciprocal tariffs, Trump shifts to global duties: details the Court’s nullification of 15 % reciprocal tariffs, the immediate 10‑15 % global tariff, its 150‑day authority, and South Korea’s unchanged $350 B investment, while warning of higher product‑specific rates.
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2.
Yonhap: US Supreme Court Strikes Down Reciprocal Tariffs, Korea Braces for New Tariff Rounds: emphasizes the legal basis of the ruling, outlines “Plan B” options including Section 301 investigations, notes existing 15 % auto and 50 % steel duties, and advises Korea to follow Japan’s investment‑maintaining approach.
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3.
Yonhap: South Korea to Track New U.S. Global Tariff After Supreme Court Ruling: reports interministerial response led by Kim Yong‑beom and Wi Sung‑lac, the 10 % tariff order effective Feb 24, pending investment‑bill hearing and March 5 vote, and the threat of raising specific duties to 25 % if legislation stalls.
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4.
Yonhap: South Korea to Track U.S. Global Tariff After Supreme Court Ruling: repeats monitoring plans, cites spokesperson Kang Yu‑jung confirming the voided 15 % tariffs, describes coordination on duty refunds, and stresses commitment to amicable trade talks while advancing the investment bill.
Timeline
April 2025 – The Trump administration imposes 15 % reciprocal tariffs on South Korean autos, steel and other goods under the International Emergency Economic Powers Act, establishing a worldwide duty regime that later fuels trade tensions [1].
Oct 2025 – South Korea and the United States sign a trade agreement committing Seoul to invest US$350 billion in advanced industries and shipbuilding in the United States over ten years, anchoring the bilateral relationship amid looming tariff disputes [3].
Feb 20, 2026 – The U.S. Supreme Court rules that President Trump’s reciprocal tariffs violate the International Emergency Economic Powers Act because only Congress may levy duties, nullifying the 15 % tariffs and opening the door for “Plan B” tariff measures [2][3].
Feb 21, 2026 – South Korea’s policy chief Kim Yong‑beom and national‑security adviser Wi Sung‑lac convene an inter‑ministerial meeting, announcing that the government will “closely monitor any further U.S. measures” and coordinate duty‑refund information for affected firms [3][4].
Feb 24, 2026 – President Trump signs an order applying a uniform 10 % global tariff to all imports under Section 122 of the 1974 Trade Act, with a statement that the rate “could rise to the statutory ceiling of 15 %” if warranted [1][3][4].
Feb 24, 2026 – The new global tariff is authorized to remain in effect for up to 150 days without congressional approval, allowing the administration to extend or increase duties by citing unfair trade practices, domestic‑industry harm, or national‑security concerns [1].
Feb 24, 2026 – South Korea’s $350 billion investment pledge remains unchanged despite the tariff shift, and the government pledges “continued talks and investment compliance” while warning against hasty renegotiations that could trigger retaliatory measures [1].
Feb 24, 2026 – Analysts caution that the legal change “creates a risk of higher product‑specific duties” on Korean autos, semiconductors and steel, prompting Seoul to brace for possible increased losses [1][2].
Feb 24, 2026 – The South Korean presidential office reiterates its intent to keep Korea‑U.S. trade discussions amicable and to push forward the pending special investment bill, with a parliamentary hearing scheduled for Tuesday and a plenary vote set for Mar 5, 2026 [3].
Future (post‑Feb 2026) – The administration may invoke Section 301 investigations to impose country‑specific or product‑specific tariffs, and Congress could extend the global tariff beyond the 150‑day window, potentially raising the rate to the 15 % ceiling if political support materializes [1][2].