Major South Korean Companies Including Taihan Cable File Lawsuit Against U.S. Government Over Reciprocal Tariff Refunds

U.S. Supreme Court to Decide Legality as Early as January 14
Companies Move to Secure Refund Rights Ahead of Ruling
Around 1,000 Companies Worldwide File Lawsuits

Major South Korean companies' U.S. subsidiaries have filed lawsuits against the U.S. government, demanding the refund of reciprocal tariffs and the suspension of additional levies. As early as January 14 (local time), the U.S. Supreme Court is expected to rule on whether the Trump administration's reciprocal tariffs were unlawful. This move is interpreted as a preemptive measure to secure the right to claim tariff refunds.

According to the South Korean industry and the U.S. Court of International Trade (CIT) on this day, the U.S. subsidiary of Taihan Cable and others have recently filed lawsuits arguing for the invalidation of the reciprocal tariffs. It is reported that not only South Korean firms but also about 1,000 companies worldwide have filed similar lawsuits for the same reason.

The Trump administration, citing the International Emergency Economic Powers Act (IEEPA, enacted in 1977), expanded executive authority in April of last year to impose reciprocal tariffs on countries around the world. The administration imposed differential reciprocal tariffs on various countries, citing unfair trade practices and threats to national security. These measures were implemented via executive order without congressional approval.

At that time, a 25% tariff rate was applied to South Korea as well. Following subsequent tariff negotiations, South Korea pledged to invest 35 billion dollars (about 51.7 trillion won) in the U.S., which led to the tariff rate being reduced to 15%.

In response to these measures, U.S. importers filed lawsuits claiming that the tariffs, imposed through excessive use of presidential authority, were invalid. It is anticipated that a ruling from the U.S. Supreme Court will be issued the following day. Previously, in May of last year, the court of first instance ruled that the reciprocal tariffs were invalid, citing abuse of presidential power, and the appellate court upheld this decision in August of last year.