U.S. Supreme Court strikes Trump’s tariffs, stirring uncertainty in Korea

U.S. President Donald Trump speaks at the White House in Washington on Feb. 18. [YONHAP]

 
The U.S. Supreme Court on Friday struck down President Donald Trump’s reciprocal tariffs as unlawful, a ruling that is likely to sow uncertainty among countries like Korea that had pledged hundreds of billions of dollars under newly negotiated trade deals. 
 
By a 6–3 vote, the Court held that the International Emergency Economic Powers Act (IEEPA) does not confer upon the president the authority to impose tariffs. The ruling affirms the reasoning of lower federal courts, which had likewise found the measures to exceed the bounds of executive power.
 
The decision effectively dismantles the legal foundation of the tariff regime Trump introduced among countries since April last year, citing what he characterized as America’s staggering trade deficit. 
 
That policy included a blanket 10 percent tariff on imports from trading partners worldwide, with additional country-specific “reciprocal” duties. 
 
Korea, initially hit with a 25 percent levy, in November secured a reduction to 15 percent after committing to invest $350 billion in the United States. 
 
Trump, however, recently threatened to raise the tariff back to 25 percent, citing delays in the promised investments. 
 

BY SARAH CHEA [chea.sarah@joongang.co.kr]