The presidential office has interpreted the US Supreme Court's ruling against the Trump administration's reciprocal tariffs as invalidating the 15% reciprocal tariffs currently imposed by the United States. In response to heightened uncertainty from the ruling, the office stated it will "continue friendly consultations with the United States." Korean companies, however, view the ruling as increasing uncertainty for US export conditions and are closely monitoring potential fallout.
Presidential spokesperson Kang Yu-jung announced these findings on the 21st through a written briefing following an inter-ministerial meeting on US trade issues chaired by National Security Office Director Wi Sung-lac and Policy Office Director Kim Yong-beom. The emergency meeting reviewed the key contents and implications of the Supreme Court's ruling that declared reciprocal tariffs under the International Emergency Economic Powers Act unlawful and void.
Regarding the invalidation of the 15% reciprocal tariffs, Kang explained, "Since the US administration subsequently announced a 10% global tariff under Section 122 of the Trade Act, we have decided to closely monitor US follow-up measures and developments among major countries."
She added, "For the refund of reciprocal tariffs already paid, which was not clearly addressed in the ruling, we will work closely with business associations and trade groups to ensure accurate information reaches our companies in a timely manner." The meeting also confirmed plans to "review the legislative progress of the Special Act on US Investment and proceed with public hearings and other legislative procedures without delay."
"It is true that this US judicial ruling has increased uncertainty in the international trade environment," Kang said. "However, the government plans to continue friendly consultations based on the special Korea-US alliance to ensure that the balanced interests secured through the Korea-US tariff agreement and our US export conditions are not compromised."
The meeting was attended by Deputy Prime Minister and Minister of Finance and Economy Koo Yun-chul, Foreign Minister Cho Hyun, Minister of Trade, Industry and Energy Kim Jung-kwan, and Trade Representative Yeo Han-koo, among other senior officials. From the presidential office, Economic Growth Senior Secretary Ha Joon-kyung and National Security Office Third Deputy Director Oh Hyun-ju also participated alongside the two directors chairing the meeting.
Korean companies are on high alert over the ruling's economic impact. While the Trump administration's pressure to raise tariffs on Korean products to 25% has lost its legal basis, uncertainty for the Korean economy has intensified as President Donald Trump immediately moved to impose a 10% global tariff on all countries.
Major Korean conglomerates are closely watching the Trump administration's follow-up measures, particularly changes to sector-specific tariff policies, as they are more significantly affected by product-specific tariffs than reciprocal tariffs.
Korea's flagship exports—semiconductors, automobiles, steel, and shipbuilding—were not subject to reciprocal tariffs, so there is no immediate change from this ruling. However, policy uncertainty has expanded as President Trump signaled his intention to continue tariff policies by announcing the 10% global tariff immediately after the Supreme Court ruling.
For semiconductors, Korea's top export item, President Trump announced last August that he would impose "100% sector-specific tariffs," but the rate has not been finalized. Imposing tariffs at such high levels would be difficult given that US Big Tech companies are importing massive quantities of memory chips for their artificial intelligence infrastructure investments. Still, considering the US strategically promotes its semiconductor industry for economic security, pressure through export controls and demands for US investment could continue to intensify.
The automobile industry expects little change, as the Korea-US negotiations last year reduced tariffs from 25% to 15%, and sector-specific tariffs are unaffected by this ruling. The shipbuilding industry is concerned about the ruling's impact on the MASGA (Make American Shipbuilding Great Again) project resulting from last year's Korea-US negotiations. Major shipbuilders finalized US investment and business plans based on those negotiations, and may need to revise their plans if the ruling alters the negotiated outcomes.
Attention is also focused on the fate of the $350 billion US investment agreement Korea already committed to in exchange for lower reciprocal and automobile tariffs. Some argue the legal basis for such large-scale investment commitments has weakened. However, the possibility that the US will deploy alternative measures such as high sector-specific tariffs remains a variable.
US Treasury Secretary Scott Bessent stated in remarks distributed by the Treasury Department for the Dallas Economic Club that "we will implement other legal authorities to replace the IEEPA tariffs." He emphasized that "Treasury estimates show that with the use of Section 122 authority, combined with potentially enhanced Section 232 and 301 tariffs, 2026 tariff revenue will be virtually unchanged."
Minister of Trade, Industry and Energy Kim Jung-kwan said at an emergency response meeting on the US tariff ruling, "Although uncertainty for US exports has somewhat increased, the US export conditions secured through the Korea-US tariff agreement will be maintained in the broader framework."