Trump IEEPA Tariffs Face Supreme Court Test as S. Korea Prepares for 'All Possibilities'

The court might rule, but the tariffs aren't going anywhere. While the U.S. Supreme Court deliberates on the legality of President Donald Trump's country-specific duties, South Korea is bracing for a high-stakes trade environment where legal victories may be short-lived.

Supreme Court Review of Trump IEEPA Tariffs

Trade Minister Yeo Han-koo told reporters in Washington on January 14, 2026, that Seoul is seeking an "optimal" response to the impending court ruling. The case centers on whether the 1977 International Emergency Economic Powers Act (IEEPA) grants the president authority to impose wide-ranging reciprocal tariffs on partners like South Korea, the EU, and Japan.

Experts describe the ruling as a 50-50 call. However, Yeo noted that the Trump administration’s will to maintain its tariff policy remains "strong." If the court strikes down the IEEPA justification, officials expect the White House to pivot to other legal tools, such as Section 301 of the 1974 Trade Act or Section 338 of the 1930 Tariff Act, to continue collections.

New AI Chip Tariffs Complicate Trade Strategy

The situation escalated on Wednesday as Trump signed a new proclamation levying a 25 percent tariff on certain AI chips. This specific duty targets chips imported to the U.S. and subsequently re-exported. Notably, it excludes chips destined for U.S. data centers or domestic consumer applications, a move designed to protect local infrastructure while pressuring global supply chains.

Minister Yeo delayed his return flight to Seoul to analyze the impact on South Korean chipmakers. The industry ministry is now collaborating with major tech firms to assess potential damage to the export-heavy economy.