Trump's legal battle over tariff legitimacy could have ramifications for Korea-U.S. trade agreement

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Trump's legal battle over tariff legitimacy could have ramifications for Korea-U.S. trade agreement

Published: 04 Sep. 2025, 11:26 Updated: 04 Sep. 2025, 16:24

Audio report: written by reporters, read by AI

U.S. President Donald Trump gives remarks during a bilateral meeting with Polish President Karol Nawrocki in the Oval Office of the White House in Washington on Sept. 3. [EPA/YONHAP]

U.S. President Donald Trump warned Wednesday that if his administration loses a lawsuit over reciprocal tariffs, recently signed trade agreements with countries including Korea could be invalidated.

“Our country has a chance to be unbelievably rich again,” Trump said to reporters at the White House ahead of a meeting with Polish President Karol Nawrocki. “It could also be unbelievably poor again. If we don't win that case, our country is going to suffer so greatly, so greatly.”

Trump was speaking in regards to a U.S. appeals court ruling last week that found that many of his tariffs were illegal.

Calling the case one of the “most important” to go before the U.S. Supreme Court, Trump expressed confidence, saying, “I think we are going to have a big victory.”

"We made a deal with the European Union where they're paying us almost a trillion dollars. And you know what? They're happy. It's done. These deals are all done," Trump said. "I guess we'd have to unwind them."

A federal appeals court previously ruled that the International Emergency Economic Powers Act (IEEPA), which Trump used as the legal basis for imposing tariffs, authorizes the president to regulate imports but does not explicitly grant tariff-imposing authority.

However, the ruling’s effect was suspended until Oct. 14 to allow time for the administration to appeal. The White House has said it plans to bring the case before the Supreme Court.

The current makeup of the Supreme Court includes six conservative justices and three liberal justices. Treasury Secretary Scott Besant and other administration officials said they believe the Court will uphold the president’s authority to impose tariffs. Even in the event of an unfavorable ruling, the administration intends to continue using other legal frameworks — such as the 1930 Tariff Act — to justify tariffs.

In late July, Korea and the United States reached an agreement to lower the mutual tariff rate imposed on Korean goods from 25 percent to 15 percent. In return, Korea committed to investing $350 billion in the United States and purchasing $100 billion worth of American energy products.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY BAE JAE-SUNG [[email protected]]