Nongshim files first tariff refund lawsuit against Trump administration; food industry watches to see whether others join

[Financial News] Nongshim’s U.S. subsidiary has filed a lawsuit seeking tariff refunds from the Donald Trump administration, becoming the first South Korean food company to do so. Attention is focused on whether this will lead to a group lawsuit seeking tariff refunds by South Korean food companies operating in the U.S. market, including CJ CheilJedang and Samyang Foods Co., Ltd.
According to the food industry on the 2nd, Nongshim’s U.S. subsidiary filed a lawsuit seeking tariff refunds on the 28th of last month, local time, in the United States Court of International Trade (CIT) against the U.S. government, U.S. Customs and Border Protection (CBP), and CBP chief Rodney Scott.
It is the first time a South Korean food company has filed a lawsuit seeking tariff refunds from the U.S. government.
In its complaint, Nongshim argued that tariffs it had paid under the International Emergency Economic Powers Act (IEEPA) should be returned with interest. It also reportedly sought a recalculation for import volumes that had already been finalized.
The Trump administration had previously declared the U.S. trade deficit a national emergency in April last year and imposed reciprocal tariffs on trading partners under the IEEPA. However, the U.S. Supreme Court ruled on Feb. 20 that the law does not give the president the authority to impose tariffs.
CBP stopped collecting tariffs immediately after the court ruling and also opened a refund channel in April. The amount of IEEPA tariffs collected, which CBP tallied last March, reached approximately $166 billion.
About 7,000 companies are reportedly known to have filed lawsuits seeking tariff refunds against the U.S. government in the United States Court of International Trade.
However, no South Korean food company other than Nongshim has filed a lawsuit seeking tariff refunds. This is thought to reflect concerns about trade friction and a deterioration in U.S. business. Major food companies operating in the U.S. include Samyang Foods Co., Ltd., CJ CheilJedang, and Daesang Corporation.
Samyang Foods Co., Ltd. sells products and merchandise made in South Korea, which its U.S. sales subsidiary, Samyang America, purchases from its headquarters, to local wholesalers and retailers and major distribution channels. CJ CheilJedang is expanding its local production infrastructure and distribution network in the U.S., with bibigo at the center of its efforts. Daesang Corporation has entered the U.S. market with products including kimchi.
An industry source said, “Nongshim has clearly opened the way for K-food companies that had been treading carefully over concerns about trade friction in the U.S. If Nongshim, as a first mover, establishes a legal precedent through its lawsuit, the amount of tax that could be refunded would be substantial, so attention is focused on whether other food companies will join a group lawsuit.”

[email protected] Kim Seo-yeon Reporter