Kim Yong-beom, the presidential chief of staff for policy, and National Security Adviser Wi Sung-lac, presided over an interministerial meeting to discuss the government’s response after the U.S. high court ruled Friday (U.S. time) against Trump’s use of the International Emergency Economic Powers Act to justify the reciprocal tariffs and other duties, News.Az reports, citing foreign media.
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In a swift response to the court decision, Trump signed an order the same day imposing a new 10 percent global tariff on all countries starting Feb. 24 under Section 122 of the 1974 Trade Act.
“Although the 15 percent reciprocal tariffs imposed by the U.S. have become invalid under the ruling, the U.S. administration has announced a 10 percent global tariff under Section 122 of the Trade Act,” presidential spokesperson Kang Yu-jung said in a written briefing. “The government will closely monitor additional U.S. measures and responses by major countries.”
The ruling came at a time when Seoul is under pressure to expedite the implementation of its trade deal with Washington. Trump threatened last month to raise “reciprocal” tariffs on auto, lumber and pharmaceutical products on South Korea back to 25 percent from 15 percent, citing Seoul’s lack of progress in legislating a special bill to support its investment pledge to the United States.
Under the deal finalized last October, Seoul agreed to invest a combined US$350 billion in the U.S. for cooperation in advanced industries and shipbuilding.
Regarding the refund of duties already paid, which was not clearly addressed in the ruling, the government will work closely with business groups and industry associations to ensure accurate information is delivered to Korean companies in a timely manner, Kang added.
“Although the U.S. court ruling has increased uncertainty in the global trade environment, the government plans to continue amicable negotiations based on the special Korea-U.S. alliance so as not to undermine the balance of interests and export conditions secured through bilateral trade agreements,” Kang said.
Following the court decision, Trump announced plans to impose other tariff measures under different legal provisions, including Sections 122, 201 and 301 of the 1974 Trade Act and Section 338 of the 1930 Tariff Act, raising fresh uncertainty for South Korea’s trade outlook.
At the meeting, the participants also reviewed the legislative process for a special bill on U.S. investment, currently pending in the National Assembly, and agreed to proceed with it without disruption.
Earlier this month, the Assembly passed a resolution to form a special committee to fast-track legislation on Seoul’s investment pledge.
A hearing on the legislation is scheduled for Tuesday as rival parties plan to process the bill at a plenary session March 5.
