US Tariff Landscape Shifts: Supreme Court Ruling and Potential for New Trade Measures
The US trade landscape is undergoing significant changes following a Supreme Court ruling invalidating tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA). Whereas this decision necessitates a refund of approximately $250 trillion won (roughly $175 billion USD) to importers, the administration is signaling its intent to maintain a protectionist stance through alternative legal avenues, raising concerns about potential retaliatory measures against countries like South Korea.
Supreme Court Strikes Down Trump-Era Tariffs
On February 20, 2026, the US Supreme Court ruled that tariffs levied on countries worldwide, including South Korea, by former President Donald Trump under IEEPA were unlawful MSN. This decision, a 6-3 vote, marks the first time during Trump’s second term that the conservative-leaning Supreme Court has overturned a government policy. The court determined that IEEPA does not grant the president the authority to impose tariffs The Hill.
Plan B: Section 301 and the Trade Expansion Act
Despite the setback, the current administration is preparing to utilize other trade authorities to continue imposing tariffs. The administration has indicated that Section 301 of the Trade Act will be a key component of this “Plan B” The Hill. Investigations under Section 301, which allows for retaliatory measures like tariffs and import restrictions when other countries are deemed to engage in unfair trade practices or discriminate against US companies, have already begun targeting major trading partners Khan.
Concerns Over Digital Regulatory Barriers
The Office of the United States Trade Representative (USTR) has announced investigations focusing on perceived digital regulatory barriers in countries like South Korea. These include the Fair Network Utilization Price Act and restrictions on exporting high-definition maps. There are fears that the US government may use these regulations as justification for increased pressure and potential tariffs, arguing that they discriminate against US Big Tech companies.
Potential Impact on Korean Regulations
Several Korean regulations are under scrutiny. The ‘Enforcement Decree of the False and Manipulated Information Eradication Act,’ which strengthens the management responsibility of large platform operators like Google and Meta, has drawn criticism from the US State Department, which expressed concerns about its potential negative impact on US online platform companies. Regulations concerning in-app payments imposed on Google and Apple, while previously subject to committee failures, may face renewed challenges given the administration’s willingness to employ tariff measures.
Counterarguments and Potential for Resolution
Some experts argue that the Korean regulations do not violate the Korea-US Free Trade Agreement (FTA) as they are generally applied to both domestic and foreign businesses. Ahn Jeong-sang, an adjunct professor at Chung-Ang University, suggests that compromises can be reached, particularly regarding the export of Google maps, acknowledging US security concerns Khan. Some American IT companies already pay network usage fees to Korean internet service providers.
South Korea’s Response
South Korea is closely monitoring the situation and preparing to respond to any additional US measures Korea Herald. The country is bracing for potential trade friction as the US seeks alternative methods to maintain its tariff policies.