12.5% Tariff Alert: Why the U.S. Is Targeting South Korean Imports

On Dec. 28 last year, one day before the presidential office moved back to the Blue House, the South Korean flag fluttered over a relatively quiet compound. The phoenix flag is scheduled to be raised at midnight on the 29th. The photo was taken from the Government Complex-Seoul in Jongno-gu on the 28th. /Photo by Park Seong-il

The Blue House said on the 3rd that it will actively respond through planned written submissions and public hearings after the U.S. Trade Representative (USTR) announced plans to impose additional tariffs of 10% or 12.5% on imports from countries, including South Korea, that it says failed to block trade in goods produced with forced labor.

In a statement, the Blue House said it will do its best to ensure the balance of benefits under the existing U.S.-South Korea tariff agreement is not undermined, taking into account ongoing Section 301 investigations, including those related to alleged overproduction.

The Blue House added that since the USTR launched its Section 301 probe on March 12 into bans on imports of products produced with forced labor, the government has maintained close communication with U.S. officials through written submissions and bilateral consultations.

On the 2nd (local time), the USTR said its Section 301 review of 60 economic jurisdictions found that 54, including South Korea, had failed to prohibit imports of products made with forced labor and announced plans to impose an additional 12.5% tariff. It proposed a 10% tariff for the remaining six jurisdictions.

The U.S. government launched Section 301 investigations into dozens of countries, including South Korea, to identify alternatives to its global tariff policy after the Supreme Court ruled that policy unlawful.