In protest against the U.S. Supreme Court's ruling voiding the reciprocal tariff, President Donald Trump's 15% global tariff will take effect at 2:01 p.m. on the 24th Korea time (12:01 a.m. on the 24th Eastern Time).
Earlier, on the 20th, the Supreme Court ruled that President Trump's tariff measures on each country based on the International Emergency Economic Powers Act (IEEPA) were unlawful. Trump immediately signed an executive order imposing a 10% tariff on each country to replace the reciprocal tariff, and the next day said he would raise the tariff rate to 15%, the maximum legally allowed.
The Trump administration is expected to keep rolling out tools to replace the reciprocal tariff. U.S. Treasury Secretary Scott Bessent signaled that within the 150-day validity period of the global tariff, the administration will conduct investigations under Section 232 of the Trade Expansion Act and Section 301 of the Trade Act and move to implement country- and item-specific "pinpoint" measures. Section 232 of the Trade Expansion Act allows tariffs on specific items for national security threats, and Section 301 of the Trade Act allows tariffs on counterparties that engage in unfair and discriminatory trade practices against the United States.
Countries that hurried to conclude trade deals under last year's U.S. pressure for a reciprocal tariff are weighing their next steps. Although the reciprocal tariff that underpinned those trade agreements was ruled unlawful, another tariff imposition is imminent, putting them in a position where they must minimize damage to their own economies.
First, the European Union (EU) put off ratifying the trade agreement it concluded with the United States in July last year. Bernd Lange, Chairperson of the European Parliament's trade committee, said, "The situation is more uncertain than ever," and explained, "We agreed to suspend legislative work until clarity, stability and legal certainty are re-established in trade relations with the United States."
The United Kingdom is asking the United States whether the existing bilateral trade agreement remains valid under the new global tariff, and India, which earlier this month signed a trade deal with the United States to cut goods tariff rates from 50% to 18%, has postponed this week's planned trade talks with the United States indefinitely.
Japan plans to proceed as is with its first-round investment pledge to the United States, the New York Times (NYT) reported. China said it is "conducting a comprehensive assessment" of the Supreme Court ruling and its impact.
The Korean government also said it will continue amicable consultations with the United States and expressed a position of respecting the existing agreements. It also plans to proceed unchanged with selecting specific projects for U.S.-bound investments under last year's Korea-U.S. tariff and trade agreement. With concerns that Korea could be included among those surveyed under the U.S. Trade Act Section 301 investigation, Seoul appears intent on carefully managing trade issues.
Amid this, President Trump is pressuring countries to implement existing agreements. Through his social media (SNS) platform Truth Social, he warned that countries that seize on the Supreme Court's ruling against the reciprocal tariff would face retaliation with higher tariffs, and said they should honor U.S.-bound investment pledges and other commitments made under existing trade agreements.