New tariffs imposed by the United States on global imports took effect on the 24th (local time), following the Supreme Court's ruling that President Donald Trump's reciprocal tariffs were unlawful. While the initial rate stands at 10%, the administration is expected to raise it to 15% and expand coverage to include large-capacity batteries, power grid equipment, and telecommunications devices.
According to foreign media reports, the new tariffs under Section 122 of the Trade Act went into effect at 12:01 a.m. Eastern Time (2:01 p.m. Korean time on the 24th), applying to all U.S.-bound exports worldwide except for exempted items.
Foreign media outlets projected that Korean companies including SK On could receive temporary tariff benefits. Bloomberg reported that "companies from India, Turkey, South Korea, and Japan—such as Waaree, SK On, LG, and Panasonic—now have a short but profitable window for U.S. exports." This includes SK On's non-EV batteries. Korean batteries had faced tariffs of up to 15% under the International Emergency Economic Powers Act (IEEPA), while the new tariff applies only 10%.
However, the benefits are not expected to last long, as the administration plans to raise the Section 122 rates through additional proclamations and is also considering new tariffs under Section 232 of the Trade Expansion Act.
The Wall Street Journal, citing sources, reported that "the U.S. government is examining tariffs on large-capacity batteries, cast iron and steel parts, plastic piping, industrial chemicals, power grids, and telecommunications equipment under Section 232 of the Trade Expansion Act."
The U.S. Department of Commerce currently imposes sectoral tariffs on automobiles and parts, as well as steel, aluminum, and derivative products. This would expand the list of covered items. The administration is also considering tariffs on nine additional product categories, including semiconductors, pharmaceuticals, drones, industrial robots, and polysilicon used in solar panels.
Additionally, the U.S. government is pursuing revisions to how tariffs on steel and aluminum are assessed, according to the WSJ. The plan would classify steel and aluminum derivative products into groups based on metal content, applying differentiated tariff rates. However, tariffs would be levied on finished product prices rather than metal content value. While nominal tariff rates could appear lower under this approach, the higher tax base could actually increase the amount payable, the WSJ analyzed. Korean companies' refrigerators and washing machines could face increased tariff burdens as a result.