U.S. Warns of Additional 12.5% Tariff on South Korea, Citing Inadequate Response to Forced Labor

After the collapse of the so-called reciprocal tariff system, the United States has sought a new justification for imposing tariffs through Section 301 of the Trade Act of 1974, and has now warned that it will levy an additional 12.5% tariff on South Korean products. U.S. trade authorities claimed that South Korea had not properly addressed products made with forced labor.
In a press release posted on its website on the 2nd local time, the Office of the United States Trade Representative (USTR) said the results of its Section 301 investigation showed problems with the trade policies of 60 countries and economic blocs, including South Korea.
USTR argued that the affected regions had "failed to effectively prohibit imports of products produced with forced labor," causing U.S. goods to "bear burdens or face restrictions" when competing in those markets.
USTR proposed an additional 10% tariff for six economic blocs, including Canada, the European Union (EU), Mexico and Indonesia, saying they had some related systems in place but were weak in enforcement. The remaining 54 economic blocs, including South Korea, China, Japan, the United Kingdom, Australia and Taiwan, were classified as subject to a higher 12.5% tariff rate because they were judged to lack both the necessary legal framework and enforcement system.
Based on the findings, USTR plans to accept written comments until July 6, hold a public hearing on July 7, and then finalize its measures. In a statement, USTR Representative Jamieson Greer said, "It is unacceptable that our most important trading partners have failed to address the import of goods made with forced labor."
In response, Cheong Wa Dae said on the same day that it would do its utmost to ensure that the balance of benefits under the existing United States–Korea customs agreement is not undermined. It added that the government would actively respond to the submission of opinions and the public hearing, while taking the Section 301 investigation and other factors into comprehensive consideration.
pjw@fnnews.com Park Jong-won, Choi Jong-geun Reporter