Commerce Minister Yeo Han-koo speaks to the press at a prepare station in Washington, Wednesday (native time). Yonhap
Korea would search an “optimum” response whereas watching different international locations’ strikes, ought to the U.S. Supreme Courtroom rule towards President Donald Trump’s broad country-specific tariffs, a senior Seoul official mentioned Wednesday, stressing the Asian nation is getting ready for “all potentialities.”
Commerce Minister Yeo Han-koo made the remarks in a gathering with reporters in Washington because the excessive courtroom has been deliberating on the legality of Trump’s use of the 1977 Worldwide Emergency Financial Powers Act (IEEPA) to impose “reciprocal” tariffs on most buying and selling companions, together with Korea, the European Union and Japan.
Yeo had deliberate to move again to Korea on the day however delayed his flight to look at potential ramifications from a proclamation that Trump signed on Wednesday to levy a 25 p.c tariff on sure semiconductors for synthetic intelligence (AI).
“Whereas watching how different international locations with (commerce) agreements with the U.S. would reply, (Korea) would want to discover an optimum judgment relying on how the state of affairs would play out,” Yeo instructed reporters, addressing a query over how Seoul would transfer within the occasion of a ruling towards IEEPA-based tariffs.
The minister added that in his keep within the U.S. capital, he had felt that the Trump administration has a “sturdy” will to make use of all instruments accessible to keep up its tariff coverage even when the courtroom palms down a ruling towards the tariffs.
He identified that there are numerous predictions as as to whether the courtroom would rule in favor of or towards IEEPA tariffs, with the ruling seen as a “50-50” name.
“So it’s, in actual fact, tough to make a prediction,” he mentioned, noting that consultants in Washington assume {that a} courtroom resolution might come at any time.
Observers have mentioned {that a} courtroom ruling towards reciprocal tariffs may set off what may very well be an advanced course of for corporations to obtain tariff refunds.
On this subject, Yeo mentioned that the Seoul authorities is making preparations for all potentialities.
Even when the ruling is towards IEEPA tariffs, the Trump administration is predicted to leverage different authorized authorities or means at its disposal to proceed tariff assortment.
Yeo mentioned that Part 301 of the 1974 Commerce Act — used for country-specific tariffs towards commerce violations — could be the “most helpful” instrument for the Trump administration, whereas different choices are additionally accessible, together with Part 338 of the 1930 Tariff Act for duties towards international locations with commerce practices discriminating towards the U.S.
Commenting on Trump’s proclamation on chip tariffs, the minister mentioned that he would search to look at the doc to see if there could be any influence on Korean chipmakers.
“It’s untimely to say something for now as we’re within the strategy of exhaustively (the proclamation),” he mentioned. “(The business ministry) headquarters in collaboration with the business are analyzing (a possible influence on Korean companies).”
Underneath the proclamation, the U.S. plans to use a 25 p.c tariff on sure AI chips, that are imported into the U.S. after which reexported to different international locations, however the levy doesn’t apply to chips to be used in U.S. information facilities or for non-data heart client functions within the U.S.
Trump has been utilizing tariffs to extend federal income, enhance home manufacturing and herald international investments.
