South Korea Responds to U.S. Tariff Proposal on Forced Labor Goods

South Korea's Blue House stated on June 3 that it will take all necessary measures to ensure that the balance of benefits under the existing Korea-U.S. tariff agreement is not disrupted in response to the U.S. Trade Representative's (USTR) announcement of high additional tariffs on 60 trading partners, including South Korea.

A Blue House official said in a media briefing, "The government will actively respond to the upcoming submission of comments and public hearings scheduled for July, while taking into account the ongoing Section 301 investigation into overproduction."

On June 2, the USTR released the results of its investigation, citing insufficient efforts by countries to prevent the import of goods produced through forced labor, which has created an unfair competitive environment.

The USTR proposed additional tariffs of 10% or 12.5% by country, with South Korea facing a 12.5% additional tariff. This announcement comes approximately three months after the USTR initiated the relevant investigation.

Last year, South Korea committed to a total investment of $350 billion (approximately 534 trillion won) in the U.S. during tariff negotiations, successfully reducing the previously announced 25% reciprocal tariff to 15%. Currently, like other countries, South Korea is subject to a temporary 10% global tariff.

Based on the findings of the forced labor investigation, the USTR plans to finalize the implementation of the proposed measures following public hearings scheduled for July 7.

The Blue House official noted, "Since the initiation of the USTR's Section 301 investigation into the import ban on products made with forced labor on March 12, the government has been closely communicating with the U.S. through submissions of comments and bilateral consultations."