The US Supreme Court’s ruling against President Donald Trump’s emergency “reciprocal” tariffs has brought fresh uncertainty to South Korea’s trade prospects. This decision has led to questions about the trade agreements secured by the Trump administration using these tariffs as a key negotiating tool. Despite the ruling, major Korean companies are not expected to make sudden changes to their investment strategies in the US.
In response to the court’s decision, Trump swiftly imposed a new 10 percent “global tariff” on all countries under Section 122 of the 1974 Trade Act. Yoon Sang-ha from the Korea Institute for International Economic Policy highlighted that companies may face short-term disruptions due to the changing legal landscape. The uncertainty surrounding the range of affected products and applicable rates could potentially delay investment and export decisions.
Experts like Chung Ji-young from Jeonbuk National University emphasized the challenge posed by the unpredictability of policy changes. He noted that Korean firms have the capability to adapt flexibly to such uncertainties. Trade groups in South Korea echoed this sentiment, emphasizing that tariff policies are external variables beyond companies’ control.
Kim Hyun-soo of the Korea Chamber of Commerce and Industry pointed out that companies will need to adjust their internal strategies once Washington’s policy direction becomes clearer. He stressed the importance of close communication between Seoul and Washington to minimize uncertainty and enable businesses to make informed decisions. Meanwhile, Ryu Sung-won from the Federation of Korean Industries dismissed the likelihood of significant changes in Korean firms’ US operations.
Ryu suggested that Seoul could capitalize on Korea’s industrial strengths in future trade negotiations. It is worth noting that reciprocal tariffs on South Korean products were reduced from 25 percent to 15 percent following a bilateral deal, where Seoul committed to investing US$350 billion in the US among other pledges in exchange for tariff reductions.
