Trump Doubles Down on Tariffs Despite Court Ruling; EU, India Tensions Rise

*This is a summary of global news from Seoul Economic Daily.*

Section 301 Probe Launched Against Brazil, China; "Asian Nations with Overcapacity Also Targeted"

The Trump administration has officially announced plans to impose high country-specific tariffs using Section 232 of the Trade Expansion Act and Section 301 of the Trade Act, despite a final court ruling declaring reciprocal tariffs unconstitutional. Investigations have already begun under Section 301 to impose tariffs on China and Brazil, with officials emphasizing that overcapacity in Asian countries will also be examined.

U.S. Customs and Border Protection (CBP) announced on January 22 (local time) that it would halt collection of tariffs under the International Emergency Economic Powers Act (IEEPA), which was ruled unconstitutional, effective midnight. However, CBP clarified this does not affect tariffs under Sections 232 and 301, adding it would release additional guidance as needed.

Simultaneously, the administration launched investigations into Brazil and China under Section 301 immediately after the Supreme Court ruling. Section 301, also known as "Super 301," allows unlimited tariff rates in response to unfair or discriminatory foreign trade practices and permits extensions. It served as the legal foundation for high tariffs on China during Trump's first term.

U.S. Trade Representative Jamieson Greer warned in a Fox News interview that day, "We will investigate several Asian countries with overcapacity." Greer also stated, "We are looking at foreign rice markets that are killing American rice farmers through unfair trade practices and massive subsidies."

EU Halts Agreement Approval; India Cancels U.S. Visit

The European Union and India are showing signs of pushback after President Trump announced new 15% global tariffs under Section 122 of the Trade Act. Both sides have paused ongoing negotiations, saying they will observe the U.S. response.

Bernd Lange, Chair of the European Parliament's Trade Committee, wrote on X (formerly Twitter) on January 22 (local time), "Aren't new tariffs under Section 122 a violation of the agreement?" He added, "No one knows whether the U.S. will or can comply with the agreement. Therefore, I will propose on the 23rd to suspend legislative work until there is a comprehensive legal assessment and clear commitments from the U.S. side."

Last summer, the U.S. and EU reached a trade agreement under which the EU would eliminate tariffs on American products in exchange for the U.S. reducing IEEPA-based reciprocal tariffs to 15%.

Mexico Kills Drug Lord; Trump Behind the Operation

Nemesio Oseguera Cervantes (alias "El Mencho"), leader of the Jalisco New Generation Cartel (CJNG)—one of the world's largest drug organizations—was killed in a Mexican military operation. The operation was conducted by Mexican military authorities with U.S. support, as President Trump has intensified pressure on Mexico to block drug cartels. The Trump administration hailed this as a major breakthrough in eradicating Latin American drug organizations, but retaliatory violence is spreading within Mexico, heightening security concerns.

According to Reuters on January 22 (local time), the Mexican government announced it conducted a military operation in the Jalisco region that day, killing CJNG leader El Mencho. During the operation, Mexican forces killed four cartel members at the scene, while three key figures including El Mencho died from injuries while being transported.

U.S. Deputy Secretary of State Christopher Landau wrote on X, "Just received word that Mexican security forces eliminated one of the most brutal and ruthless drug lords." He added, "This is a major breakthrough for Mexico, the United States, Latin America, and the world."

AI Market Expands; Nvidia Develops Laptop Chips

Nvidia, the world's largest AI semiconductor company, is expected to release computer chips for laptops. Having dominated AI server and high-end gaming PC markets with its graphics processing units (GPUs), Nvidia aims to expand its influence into the general personal computer market in preparation for the end of the AI boom.

The Wall Street Journal reported on January 22 (local time), citing sources, that Nvidia is developing a system-on-chip (SoC). Dell Technologies and China's Lenovo could release ARM-based Windows laptops equipped with the SoC as early as the first half of this year.

An SoC is an integrated chip combining a central processing unit (CPU) and GPU. This means combining a GPU with the CPU—the brain of a computer—to enable AI operations on PCs.

U.S. and Iran to Hold Nuclear Talks in Geneva; Military Posture Remains

The United States and Iran, facing heightened military conflict risks over nuclear weapons development, will resume nuclear negotiations in Geneva, Switzerland on January 26 (local time).

According to Reuters on January 22, the U.S. and Iran will hold their third round of nuclear talks on January 26, mediated by Oman. Omani Foreign Minister Badr al-Busaidi confirmed the resumption of talks to Reuters, expressing hope that "we can take another step toward a final agreement."