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| ▲ U.S. President Donald Trump speaks during a press briefing at the White House in Washington, D.C., on Feb. 20, 2026, following the Supreme Court's ruling that Trump had exceeded his authority when he imposed tariffs, in this photo from Reuters. (Yonhap) |
US tariff ruling-stock market
U.S. tariff ruling has limited impact on S. Korean stock market: analysts
SEOUL, Feb. 23 (Yonhap) -- The U.S. Supreme Court's ruling on President Donald Trump's reciprocal tariffs is expected to have a limited impact on the South Korean stock market, though effects may vary across sectors, analysts here said Monday.
On Friday (local time), the U.S. court ruled Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs as unlawful, making a major setback for his trade policies. Following the ruling, Trump announced a new temporary global tariff of 15 percent and vowed to issue "new and legally permissible" duties to replace the nullified reciprocal tariffs.
"The court's ruling on reciprocal tariffs will not have a huge impact on the South Korean stock market," Kang Dae-seung, an analyst at SK Securities, said, noting the newly raised blanket 15 percent tariff rate is of the same level as what was agreed upon in the Seoul-Washington trade deal last year.
Market watchers also noted that Washington would not want to escalate trade tensions with its trading partners, especially ahead of the United States' midterm elections slated for November.
Despite the overall muted market impact, the effect of the ruling is likely to vary across sectors, with the automotive sector expected to benefit the most.
"Tariffs against South Korean cars are likely to be fixed at the same level as those against other countries, at 15 percent, as the court ruling reduced tariff-related risks," Kang Seong-jin, an analyst at KB Securities, said.
Recently, Trump had threatened to raise tariffs on South Korean cars and auto parts from the previously agreed 15 percent to 25 percent, citing delays in the legal procedures regarding Seoul's US$350 billion investment pledge in America.
Tariffs on steel and aluminum, however, are likely to remain at 50 percent, since they are based on a separate law, according to market observers.
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