0
United States Trade Representative Jamieson Greer testifies during a Senate Committee on Finance hearing at the U.S. Capitol in Washington, D.C., on July 22 (local time). / Photo courtesy of Reuters, Yonhap News Agency

On July 23 (local time), the Donald Trump administration effectively imposed a 12.5 percent tariff on South Korea under Section 301 of the Trade Act.

The Office of the United States Trade Representative (USTR) finalized tariffs ranging from 10 to 12.5 percent on 60 countries, taking issue with imports of goods produced through forced labor. Japan, along with South Korea, was also hit with an effective 12.5 percent tariff.

The move introduces new replacement tariffs immediately before the expiration of the "10 percent global tariffs," which were introduced following the Supreme Court's decision on February 20 that struck down reciprocal tariffs.

In March, the USTR launched investigations under Section 301 into structural overcapacity and imports of products made with forced labor, asserting that such practices burden U.S. commerce. South Korea was targeted in both investigations.

In response, the Trump administration levied 10 percent global tariffs under Section 122 of the Trade Act, but these duties were capped at a maximum of 150 days, setting their expiration at midnight on July 24.

Under this structure, global tariffs under Section 122 filled the gap left by reciprocal tariffs, and as the global tariff deadline approached, they were replaced by Section 301 tariffs.

Regarding the 15 percent ceiling agreed upon by South Korea and the U.S. last July as a hard line, the South Korean government is conducting ongoing negotiations with the Trump administration.

                                                                                                              Ha Man-joo