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South Korean Leaders Convene After U.S. Supreme Court Blocks Trump’s Reciprocal Tariffs

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  • National Security Adviser Wi Sung-lac (L) and Kim Yong-beom, presidential chief of staff for policy, announce the results of tariff negotiations with the United States in a press briefing on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju in this file photo taken Oct. 29, 2025. (Pool photo) (Yonhap)
    National Security Adviser Wi Sung-lac (L) and Kim Yong-beom, presidential chief of staff for policy, announce the results of tariff negotiations with the United States in a press briefing on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju in this file photo taken Oct. 29, 2025. (Pool photo) (Yonhap)
    Image: Yonhap
    National Security Adviser Wi Sung-lac (L) and Kim Yong-beom, presidential chief of staff for policy, announce the results of tariff negotiations with the United States in a press briefing on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju in this file photo taken Oct. 29, 2025. (Pool photo) (Yonhap) Source Full size

Supreme Court Ruling Halts Trump’s Reciprocal Tariffs The U.S. Supreme Court on Feb 21, 2026 held that the administration’s “reciprocal” tariffs on South Korea violated the International Emergency Economic Powers Act, overturning a lower‑court injunction. The decision nullified the 25 percent duties that had been reinstated on Jan 27, 2026 after Trump claimed Seoul failed to pass domestic legislation. The ruling removes the legal basis for the emergency tariffs and forces the U.S. to seek alternative measures[2].

Trump Issues New 10 % Global Tariff Proclamation Hours after the Court’s decision, President Trump signed a proclamation imposing a uniform 10 percent tariff on imports from all trading partners, set to begin at 12:01 a.m. Washington time on Tuesday, Feb 24, 2026[1]. He later announced on Truth Social that the rate would rise to 15 percent, echoing his earlier escalation after the court loss[1]. The proclamation signals a shift from partner‑specific duties to a blanket global levy.

Seoul Calls Emergency Meeting to Formulate Response On Sunday, Feb 22, 2026, senior officials from the presidential office, the ruling Democratic Party and key ministries gathered at the Blue House to devise a coordinated policy reply[1]. Policy chief Kim Yong‑beom and National Security Adviser Wi Sung‑lac chaired the session, underscoring its high priority[1]. Attendees included Finance Minister Koo Yoon‑cheol, Industry Minister Kim Jung‑kwan, Trade Minister Yeo Han‑koo and DP floor leader Han Byung‑do, reflecting broad cabinet involvement[1].

Agenda Focuses on Tariff Countermeasures and U.S. Investments The meeting agenda listed two core items: formulating a diplomatic and economic response to the U.S. tariff proclamation and reviewing the status of South Korean investment projects currently under construction in the United States[1]. Officials plan to consult with U.S. counterparts to negotiate relief or exemptions while safeguarding the $350 billion investment commitments secured in 2025[2]. The discussion also considered potential retaliation measures and alignment with the Democratic Party’s trade strategy.

Background: 2025‑2026 Tariff Escalation Timeline Trump initially imposed 25 percent duties on steel, aluminum and automobiles in early 2025, later offering a provisional 15 percent rate in exchange for a $350 billion Korean investment pledge secured at the Oct 29, 2025 APEC summit[2]. After the U.S. implemented the 15 percent auto tariff in Dec 2025, Seoul was accused of failing to enact required legislation, prompting Trump to reinstate 25 percent “reciprocal” tariffs on Jan 27, 2026[2]. The Supreme Court’s Feb 21 decision and the subsequent 10 percent global tariff mark the latest pivot in this trade dispute.

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Timeline

July 30, 2025 – The United States and South Korea hold a White House meeting where President Trump and President Lee Jae‑Myung announce a deal to cut U.S. auto tariffs on Korean cars to 15 % in exchange for a $350 billion investment pledge, marking the first major concession after the July trade framework. [6]

August 26, 2025 – President Lee and President Trump endorse the trade deal at an August summit, confirming the investment commitment and setting the stage for detailed negotiations. [6]

October 29, 2025 – At the APEC summit in Gyeongju, the leaders announce a comprehensive pact that reduces Korean auto tariffs to 15 % retroactive to Nov 1, commits South Korea to a $200 billion cash investment plus $150 billion in shipbuilding, and secures U.S. approval for nuclear‑powered submarines. [6]

November 14, 2025 – A joint fact sheet outlines the $350 billion investment package and the reciprocal 15 % tariff rate, providing a public roadmap for implementation. [6]

November 26, 2025 – South Korea’s National Assembly passes a special bill to enable the $350 billion investment, satisfying a key condition of the U.S. tariff reduction. [30][29]

December 1, 2025 – U.S. Commerce Secretary Howard Lutnick confirms the reduction of the Korean auto tariff from 25 % to 15 % retroactive to Nov 1, citing the investment pledge as the basis for the change. [30]

December 3, 2025 – The Federal Register publishes the 15 % tariff on Korean autos, lumber and aircraft parts, officially implementing the deal and signaling the start of lower‑cost Korean exports to the United States. [28][27][26][29]

January 26, 2026 – President Trump posts on Truth Social that reciprocal and auto tariffs on South Korean goods will rise from 15 % to 25 % because Seoul has not ratified the July‑2025 trade agreement, threatening autos, lumber and pharmaceuticals. [21][24][25][23]

January 27, 2026 – The South Korean presidential office convenes an emergency inter‑agency meeting, orders Industry Minister Kim Jung‑kwan (then in Canada) to travel to Washington, and notes that no formal U.S. notice of the tariff hike has been received. [22][20][19][21]

January 27, 2026 – Treasury Secretary Scott Bessent tells CNBC that the United States has no trade agreement with South Korea until the Korean parliament ratifies the deal, underscoring the diplomatic pressure behind the tariff threat. [13]

January 27, 2026 – Finance Minister Koo Yun‑cheol pledges “active explanation” of South Korea’s commitment to the investment bill, emphasizing ongoing communication with the National Assembly to avoid the 25 % tariff. [17]

January 28, 2026 – President Trump says the administration will “work something out with South Korea,” offering a vague promise of negotiation after the tariff announcement. [13][16]

January 28, 2026 – Foreign Minister Cho Hyun asserts that the tariff warning is “not directly connected to the Coupang investigation,” distancing trade policy from domestic regulatory disputes. [16]

January 28, 2026 – Senior aide Kim Yong‑beom states the tariff proposal “appears 100 percent from the delayed legislation at the National Assembly,” linking the U.S. move directly to the stalled investment bill. [14]

January 29, 2026 – Industry Minister Kim Jung‑kwan meets U.S. Commerce Secretary Howard Lutnick in Washington, telling reporters “I will do my best” to resolve the tariff issue and reaffirm Seoul’s $350 billion investment pledge. [12]

January 30, 2026 – After two days of talks, Kim Jung‑kwan reports that discussions with Lutnick end without agreement, but both sides agree to continue negotiations via video link, leaving the timing of any tariff increase uncertain. [11]

February 1, 2026 – The ruling Democratic Party announces it will push the special investment bill through an extraordinary parliamentary session slated for late February to early March, aiming to meet the U.S. deadline. [10]

February 3, 2026 – Foreign Minister Cho Hyun meets U.S. Secretary of State Marco Rubio in Washington, explaining the pending special bill and seeking U.S. understanding of South Korea’s legislative timeline. [8]

February 3, 2026 – Cho also briefs U.S. officials on the “Critical Minerals Ministerial” scheduled for February 4, linking trade negotiations to broader supply‑chain cooperation on rare earths. [8][9]

February 4, 2026 – The inaugural Critical Minerals Ministerial convenes in Washington, bringing together allies to diversify supply chains for rare earths and other strategic materials, reinforcing the strategic dimension of the U.S.–Korea partnership. [8]

February 5, 2026 – Seoul announces continued consultations with Washington to avert the 25 % tariff, while also revealing a police request for arrest warrants in a bribery probe and highlighting new nuclear‑fuel and submarine cooperation with the United States. [7]

February 21, 2026 – The U.S. Supreme Court upholds a lower‑court ruling that the 1977 International Emergency Economic Powers Act does not authorize the “reciprocal” tariffs on South Korea, delivering a major setback to the administration’s trade strategy. [6]

February 21, 2026 – In response, President Trump signs a proclamation imposing a 10 % worldwide tariff and vows additional measures to replace the struck‑down emergency duties, signaling a shift to broader tariff policy. [6]

Late February – early March 2026 (future) – South Korea’s extraordinary parliamentary session is expected to vote on the $350 billion investment bill, a decisive step that could restore the 15 % tariff rate and unlock the agreed U.S. concessions. [10]

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