Cheong Wa Dae: 'Closely Monitoring' US Court Ruling on 10% Global Tariff, Will Respond Calmly

The South Korean presidential office, Cheong Wa Dae, has issued a measured response to a U.S. court's decision invalidating President Trump's "10% global tariff." While acknowledging the ruling, which found the tariff imposed under Section 122 of the Trade Act to be unlawful, Cheong Wa Dae emphasized a strategy of "calmly responding" while "closely monitoring related developments."

From Seoul's perspective, this initial court decision is seen as a first-instance ruling with limited scope, primarily affecting the specific plaintiffs involved. The government's stance is that this judgment does not fundamentally shake the existing tariff agreement framework between South Korea and the United States. This cautious optimism reflects a desire to avoid escalating tensions while remaining vigilant about potential repercussions.

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We plan to respond calmly while continuously paying close attention to related trends and based on the principle of securing a balance of benefits in accordance with our existing tariff agreement.

The context of this ruling is crucial. It follows a previous Supreme Court decision that deemed tariffs imposed under the International Emergency Economic Powers Act (IEEPA) unlawful. Trump's administration then turned to Section 122 of the Trade Act to implement the global tariff. The lawsuit was brought by U.S. small businesses, including spice importers, who argued against the legality of these tariffs.

While the U.S. court ordered the refund of tariffs already paid by the plaintiffs, it limited the suspension of tariff collection to only two specific companies and Washington state. This nuance is significant for South Korea, as it suggests the immediate impact on broader trade relations might be contained. Cheong Wa Dae's approach prioritizes maintaining stability in bilateral trade, especially given the importance of the U.S. market for the Korean economy, while carefully navigating the complexities of U.S. trade policy under the Trump administration.

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This ruling is a first-instance judgment on the Section 122 Trade Act tariff lawsuit filed in early March in the United States, and we understand that the ruling's effect is limited to some of the plaintiffs.