The move could threaten South Korea’s efforts to impose greater oversight on big tech companies.
The directive, signed on Feb. 21, instructs the United States Trade Representative (USTR) to examine and, if necessary, implement retaliatory measures — including tariffs — against nations that levy digital taxes on U.S. firms such as Google and Meta.
Though the memorandum does not explicitly target South Korea, its broad scope includes regulations related to cross-border data flows, mandatory local content funding, and network usage fees — issues central to legislative efforts currently under consideration in Seoul.
“If the United States strengthens tariffs on other products due to big tech regulations, the government and domestic telecommunications companies need to carefully reconsider imposing network usage fees,” said Chang Sang-sik, director general of the Korea International Trade Association’s Institute for International Trade.
The directive comes at a critical time for South Korea, where lawmakers are debating measures that would require foreign content providers to pay network usage fees — a practice that major tech firms, including YouTube, have long avoided in the Korean market.
Further complicating matters is the Korea Fair Trade Commission’s proposed Platform Competition Promotion Act, which seeks to curb anti-competitive practices such as self-preferencing and tied selling.
The legislation has met resistance from Washington, with USTR nominee Jamison Greer calling it “intolerable” earlier this month.
Amid mounting concerns, South Korean officials have launched diplomatic efforts to seek exemptions from potential tariffs. Park Jong-won, deputy trade minister at the Ministry of Trade, Industry and Energy, met with officials from the U.S. Commerce Department and USTR between Feb. 17 and Feb. 20 to discuss the issue.
Further discussions are expected, with South Korea’s Minister of Trade, Industry and Energy, Ahn Duk-geun, set to meet with U.S. Secretary of Commerce Howard Lutnik later this month. The talks come as South Korea contends with multiple tariff pressures across key industries, including steel and automobiles.
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