The US Supreme Court has ruled against President Donald Trump’s broad emergency tariffs, marking a significant blow to his trade policy. The decision casts doubt on existing trade agreements with South Korea and other nations, agreements secured using these tariffs as a central negotiating tactic.
The high court’s ruling addressed the legality of President Trump’s utilization of the 1977 International Emergency Economic Powers Act (IEEPA) to impose “reciprocal” tariffs on South Korea and other countries. The decision raises the possibility that Washington will have to initiate a complex tariff refund process.
The Trump administration had imposed reciprocal tariffs of 15 percent on South Korean products, a decrease from the initial 25 percent following a bilateral agreement. As part of that agreement, Seoul committed to investing US$350 billion in the United States, among other pledges, in exchange for the tariff reduction.
In late August, a federal appeals court sided with the lower court’s May ruling, stating that the IEEPA-based tariffs exceeded presidential authority.
