Washington's new trade agenda poses fresh challenges for Seoul

By Lee Jung-woo Posted : June 17, 2026, 17:35 Updated : June 17, 2026, 18:00
Speakers and lawmakers from the main opposition of the People Power Party (PPP) pose for a group photo at a forum at the National Assembly in Yeouido, Seoul on June 17, 2026. AJP Lee Jung-woo
SEOUL, June 17 (AJP) - Seoul should closely monitor Washington's evolving trade strategy and swiftly implement South Korea's trade deal with the U.S. agreed last fall, said an ex-trade chief on Wednesday.

Speaking at a forum at the National Assembly in Seoul, former Trade Minister Jeong In-kyo also warned that the U.S.' annual trade report is increasingly being used as a platform for future enforcement actions beyond tariffs.

"The National Trade Estimate (NTE) report has essentially become a document that organizes the justifications for future actions against trading partners," Jeong said.

"Even if countries reach agreements with the U.S., the report contains grounds that could be used for additional measures later."

The forum, titled "America's New Trade Agenda — Is Korea Prepared?," focused on implications of the U.S. Trade Representative's NTE report and recent investigations under Section 301 of the U.S. Trade Act.
 
Rep. Kim Gunn of the main opposition of the People Power Party (PPP) attends a forum at the National Assembly in Yeouido, Seoul on June 17, 2026, in this photo provided by him.
Jeong, who previously headed South Korea's trade negotiations office under the Ministry of Trade, Industry and Energy, said the character of the NTE report has changed significantly under U.S. President Donald Trump's trade agenda.

According to Jeong, the report has evolved from a traditional catalog of foreign trade barriers into a broader framework supporting Washington's efforts to reshape global trade rules and tighten economic pressure on China.

He said this year's report expanded to more than 500 pages and included substantially more material on digital regulations and other non-tariff barriers.

"The core objective of the current trade strategy is the construction of a comprehensive containment network against China," Jeong said. He added that Washington is particularly focused on preventing Chinese exports from entering the U.S. market through third countries.
 
Former South Korean Trade Minister Jeong In-kyo speaks at a forum at the National Assembly in Yeouido, Seoul on June 17, 2026, in this photo provided by lawmaker Kim Gunn.
Jeong argued that South Korea should seek to conclude an Agreement on Reciprocal Trade, or ART, with the U.S. as quickly as possible. Countries that reach such agreements may face lower tariff rates than those that do not, he said.

The forum was moderated by Rep. Kim Gunn of the main opposition People Power Party (PPP), who served as secretary of the National Assembly's Foreign Affairs and Unification Committee during the first half of the 22nd Assembly. A career diplomat before entering politics, Kim previously served as South Korea's ambassador to the U.K. and chief negotiator on North Korea's nuclear issue under disgraced former President Yoon Suk Yeol.

A second presentation by Lee Joo Hyoung, a professor at the University of Seoul Law School, examined the legal foundations and policy implications of Section 301 investigations.

Lee said recent developments stem partly from judicial scrutiny of presidential tariff authorities in the United States, prompting policymakers to rely more heavily on other trade enforcement tools.
 
International law expert Lee Joo Hyoung of the University of Seoul speaks at a forum at the National Assembly in Yeouido, Seoul on June 17, 2026, in this photo provided by lawmaker Kim Gunn.
She described Section 301 as one of Washington's most flexible trade instruments because investigations can be expanded, revised and even reopened after being formally concluded.

"The original purpose of Section 301 is not punishment itself but creating leverage for negotiations," Lee said.

Lee noted that the Office of the U.S. Trade Representative recently launched investigations examining forced labor practices, structural overcapacity and supply-chain issues among major trading partners.

She said South Korea has drawn particular attention from U.S. officials over digital platform regulations and labor-related issues.

U.S. officials have repeatedly raised concerns that proposed Korean digital regulations could disproportionately affect American technology companies. She cited comments by U.S. Trade Representative Jamieson Greer indicating that Washington could consider Section 301 actions if it determines that discriminatory regulations exist.

Lee pointed to growing U.S. scrutiny of forced labor concerns, including cases linked to South Korea's salt-production industry.

The issue gained prominence after U.S. Customs and Border Protection imposed a Withhold Release Order on products from a salt farm in South Jeolla Province over allegations of forced labor.

The U.S. Embassy in Seoul visited Taepyung Salt Farm in August last year after U.S. authorities imposed an import hold on its products, inspecting workers' contracts, living quarters and labor conditions.

She called the move "unusual," noting that it is rare for a foreign government to conduct investigations beyond its jurisdiction. She said the U.S. was less focused on the Shinan salt farm case itself than on broader efforts to prevent goods linked to forced labor in China from entering the U.S. market.

The USTR's 2026 National Trade Estimate Report newly identified forced labor in salt production and illegal fishing issues as trade-related concerns involving South Korea, while also elevating scrutiny of the country's digital regulations and competition policies.

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