U.S. invokes Section 301 of the Trade Act of 1974 targeting South Korea, China and Japan [U.S. Section 301 investigation]

The administration of Donald Trump has launched a preliminary investigation under Section 301 of the Trade Act of 1974 to impose tariffs that would replace the "reciprocal tariffs."

The Office of the United States Trade Representative (USTR) announced on its website on the 11th, local time, that it will investigate unfair trade practices by 15 countries, including South Korea, China and Japan, as well as the European Union (EU). The 15 countries also include Singapore, Switzerland, Norway, Indonesia, Malaysia, the Kingdom of Cambodia, Thailand, the Socialist Republic of Vietnam, Taiwan, the People’s Republic of Bangladesh, Mexico and India.

In its notice, USTR pointed out that South Korea has been running a trade surplus with the United States, driven by exports of "electronic equipment, automobiles and auto parts, machinery, steel and ships." It went on to stress that "South Korea’s trade surplus expanded significantly in 2024, reaching 52 billion dollars." USTR argued that there is "evidence of structural overcapacity and overproduction" in South Korea and claimed that "the South Korean government has also acknowledged the need to reduce capacity in the petrochemical sector." Meanwhile, USTR head Jamieson Greer stated that the existing reciprocal tariff agreement "will remain in place."

Greer said that written comments from stakeholders will be accepted from the 17th of this month through the 15th of next month. He announced that a public hearing will be held on May 5, after which rebuttal comments will be received for seven days. He added that once these procedures are completed, the administration will consider responsive measures, including tariffs. Regarding the investigation period, he noted, "We are mindful of the 150-day timeline," and emphasized that "the goal is to reach a conclusion before the tariffs under Section 122 of the Trade Act of 1974 expire."

Section 301 of the Trade Act of 1974 is a statute that allows the U.S. government to retaliate, including through tariffs, when a trading partner’s unfair discrimination harms U.S. companies. To use it, an investigation by USTR into unfair practices is required, and such probes typically conclude within about a year.

These moves are a response to a decision by the Supreme Court of the United States (SCOTUS) that invalidated the reciprocal tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA). The Trump administration had used Section 122 of the Trade Act of 1974 to levy an additional 10 percent tariff on all imports. Without congressional approval, that measure is valid for 150 days and will expire after July 24. By contrast, tariffs imposed under Section 301 of the Trade Act of 1974 remain in effect for at least four years.





pjw@fnnews.com Park Jong-won Reporter