(2nd LD) U.S. trade court rules against Trump's 10 pct global tariffs

Lead

The U.S. Court of International Trade ruled Thursday against President Donald Trump's 10 percent global tariffs, marking another legal setback for his trade policy. In a 2-1 ruling, the three-judge panel concluded that the sweeping tariffs are not justified under Section 122 of the 1974 Trade Act, which Trump had invoked to impose the levies. The decision was reported by Reuters and the Associated Press, as cited by Yonhap News Agency.

Coverage Comparison

Both extracts from Yonhap News Agency, which is South Korea's leading wire service, presented the ruling with a neutral tone, focusing on the legal reasoning and the administration's expected appeal. The reports highlighted that the tariffs were temporary, took effect on February 24, and were set to expire July 24. They also noted that the ruling comes as the administration is taking steps toward new tariffs, including trade investigations.

Key Claims

• The U.S. Court of International Trade, in a 2-1 decision, ruled that the 10 percent global tariffs imposed by President Trump are not justified under Section 122 of the 1974 Trade Act. This claim was reported by both Reuters and the Associated Press, and carried by Yonhap.

• The tariffs were imposed under Section 122, which allows the president to impose import surcharges of up to 15 percent and other measures to address serious external trade and financial imbalances. These measures can initially last up to five months.

• The temporary across-the-board tariffs took effect February 24, days after the Supreme Court ruled against Trump's use of the 1977 International Emergency Economic Powers Act to justify country-specific 'reciprocal' tariffs.

• The Trump administration is expected to appeal the court decision, according to multiple sources.

• The Office of the U.S. Trade Representative (USTR) opened trade investigations in March into South Korea, China, Japan, and 13 other economies to uncover 'unfair' trade practices related to 'structural' excess capacity and production in manufacturing sectors. This investigation is proceeding under Section 301 of the 1974 Trade Act.

• The USTR also opened Section 301 investigations into 60 economies to determine whether their governments have taken sufficient steps to ban the importation of goods produced with forced labor.

• South Korea's presidential office, Cheong Wa Dae, said the country will continue to keep close tabs on the developments and respond calmly under the principle of maintaining the balance of benefits under the existing South Korea-U.S. tariff agreement. This response was reported by a single source (Yonhap) and has not been independently confirmed.

Perspectives

The ruling was described as a legal setback for Trump's trade policy, but the administration is expected to appeal. Meanwhile, Washington is already working on new tariff measures, including Section 301 investigations. From Seoul's perspective, Cheong Wa Dae emphasized a calm response and the importance of the bilateral tariff agreement reached last year, under which the U.S. agreed to lower reciprocal tariffs on South Korea to 15 percent from 25 percent in exchange for Seoul's $350 billion investment in the U.S. This agreement context, however, was reported only by Yonhap and has not been verified by other sources.