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U.S. President Donald Trump / Photo courtesy of UPI, Yonhap News Agency

Cheong Wa Dae stated on July 24 that "there is a consensus between South Korea and the United States that the tariff agreement must be respected," in response to the Donald Trump administration imposing "forced labor tariffs" on 60 countries, including South Korea, under Section 301 of the Trade Act.

In a press notice released on the same day, Cheong Wa Dae reported, "We will closely consult with the U.S. side to ensure that the 15 percent tariff ceiling mutually agreed upon is ultimately maintained, including the Section 301 investigation into overcapacity, which remains ongoing."

Earlier on July 23 (local time), the U.S. administration announced the imposition of forced labor tariffs on 60 countries, including South Korea, based on Section 301 of the Trade Act.

Countries that have implemented measures banning forced labor imports face a 10 percent tariff, while those without such measures face a 12.5 percent tariff. Categorized among the non-implementing nations, South Korea is expected to be subject to an effective 12.5 percent tariff.

Addressing the decision, Cheong Wa Dae explained, "This Section 301 forced labor tariff was imposed on 60 major countries based on whether they have enacted legislation prohibiting imports of goods produced through forced labor."

The Office of the United States Trade Representative stated that the new tariffs take effect at 12:01 a.m. EDT on July 24. Meanwhile, its Section 301 investigation regarding overcapacity is still underway.

The critical issue remains whether these additional levies will breach the parameters of the existing bilateral agreement. South Korea and the U.S. had previously agreed to cap reciprocal tariffs at 15 percent.

                                                                                                       Park Young-hoon