Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.
Korea remains cautious over shifts in Trump’s tariff policies
U.S. President Donald Trump turns to talk to the press pool during the governors' dinner in the East Room of the White House in Washington, Saturday. UPI-Yonhap
By Lee Gyu-lee
Gov't to proceed with US investment plan
The Korean government is carefully gauging the latest developments in the U.S. tariff policy after the American Supreme Court struck down President Donald Trump’s “reciprocal” tariffs on trade partners, only for him to quickly counter with a fresh round of global duties.
Although uncertainties have grown over the Korea-U.S. tariff agreement reached in November, Korea is determined to proceed with the plan to invest $350 billion in the U.S. At the same time, it is closely watching the possibility of the U.S. imposing separate item-specific levies on Korea’s key exports, such as semiconductors or pharmaceuticals.
Following the court ruling early Saturday, Cheong Wa Dae, economy-related ministries and the foreign affairs ministry have held multiple emergency response meetings.
The court ruled that Trump lacked authority under the International Emergency Economic Powers Act (IEEPA) to impose his sweeping tariffs, invalidating a broad set of levies he imposed last year, including the 15 percent tariff currently applied to Korea. But Trump soon imposed a 10 percent tariff, and the next day announced that he would raise it to 15 percent.
At one of the meetings held at the presidential office and presided over by presidential chief of staff for policy Kim Yong-beom and National Security Adviser Wi Sung-lac, participants assessed the impacts on Korean industries and monitored responses from other U.S. trading partners.
The Korean government is treading cautiously, signaling it will honor existing commitments while assessing the impact of the ruling.
“It is true that uncertainties have grown in the international trade environment from the U.S. Supreme Court decision,” presidential spokesperson Kang Yu-jung said in a written press briefing. “Based on our special alliance, the government will keep discussions with the U.S. so balanced interests achieved through the tariff agreements and exports to the country will not be damaged.”
Industry Minister Kim Jung-kwan held a separate meeting with the ministry’s officials and commercial counselors at Korea’s embassies in Washington and Tokyo to review the ruling and discuss response options.
Cargo containers for exports are piled at Busan Port, Sunday. Yonhap
The ministry said it had already prepared contingency scenarios in anticipation of the court’s decision and that it will continue close discussions with Washington on implementing the tariff agreements, including the $350 billion investment in the U.S., while working with the private sector to review industry impact and discuss strategies.
“The ruling has somewhat increased uncertainty surrounding exports to the United States, but the overall export conditions secured under the Korea-U.S. tariff agreement will remain largely in place,” Kim said.
“The government will closely review the decision, the U.S. administration’s follow-up measures and other countries’ responses, and mount a full-scale response that best serves the national interest while doing everything it can to protect our companies.”
Despite the legal setback to Trump’s original tariff scheme, Korea sees little room for complacency as key exports, including automobiles, steel and semiconductors, are largely subject to separate sectoral tariffs under Section 232 of the Trade Expansion Act, which are not directly affected by the ruling.
The government and ruling party have reaffirmed that Korea’s investment package for the U.S. and the passage of its special bill will proceed as scheduled.
The National Assembly's special committee on the investment bill will hold a hearing on Tuesday as planned, saying it would continue the planned process, with a goal to pass the bill in a plenary session on March 5.
The ruling Democratic Party of Korea, ministries and presidential office are set to hold a separate closed‑door meeting on Sunday evening to take stock of the fallout, including the impact on the domestic economy and trade environment, Washington’s possible next steps and the status of Korea’s planned investment projects.
The industry ministry will also hold a joint public‑private meeting on Monday, chaired by Minister Kim, to assess the ruling’s impact on domestic sectors and draw up response strategies.