As the end of the U.S. 10% global tariff approaches in two days, the South Korean government has launched a full-scale effort to prevent additional tariffs under Trade Law 301. With the possibility of a minimum 12.5% tariff due to forced labor concerns, uncertainty in trade is rising as investigations into structural overproduction across domestic manufacturing continue.
According to the Ministry of Trade, Industry and Energy, Minister Kim Jeong-kwan is visiting Washington, D.C., from July 22 to 25. He will attend the opening ceremony of the Korea-U.S. Shipbuilding Cooperation Center on July 23 and discuss investment and trade issues with senior U.S. officials, including Secretary of Commerce Gina Raimondo. Trade Negotiations Chief Yeo Han-goo has been in the U.S. since the previous day.
Before his departure from Incheon International Airport, Minister Kim told reporters, "We plan to further specify the details and schedule of investment projects related to the U.S. The opening of the Korea-U.S. Shipbuilding Cooperation Center is significant as it provides an official platform for the MASGA project."
Discussions are also likely to include U.S. tariffs. In February, President Donald Trump imposed global tariffs based on Trade Law 122 after a court ruled that reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA) were illegal. The global tariffs can be imposed for up to 150 days and are set to end on July 24.
The concern lies in what happens after the global tariffs expire. The U.S. is moving forward with procedures to utilize Trade Law 301 as a new tariff tool. The Office of the U.S. Trade Representative (USTR) is conducting investigations into forced labor and structural overproduction. USTR representative Jamieson Greer stated in a July 21 interview with CNBC that "we expect action soon," although he could not specify a timeline.
Investigations related to forced labor are progressing rapidly. The USTR has previously investigated 60 economies, including South Korea, for failing to adequately ban imports of goods produced with forced labor. Following this, a proposal to impose an additional 12.5% tariff on South Korean products has been made, with only final actions pending.
Separately, the USTR is also conducting a Trade Law 301 investigation into structural overproduction in manufacturing across 16 economies, including South Korea, China, Japan, and the European Union. While key domestic manufacturing sectors may be included in the investigation, specific tariff rates and applicable items have not yet been announced.
The government is expected to focus on preventing the 301 measures from exceeding the previously agreed 15% level during these high-level discussions. It is crucial to design the final tariff system to avoid overlaps between item-specific tariffs and 301 tariffs, as well as to secure exemptions or tariff reductions for South Korean products.
Minister Kim noted, "The Department of Commerce and USTR have expressed their commitment to maintaining a balance of interests between South Korea and the U.S. We will discuss these issues thoroughly during this visit to the U.S."
The Blue House also stated, "The government is closely monitoring related developments, and the U.S. government has expressed its intention to respect the Korea-U.S. tariff agreement. Minister Kim and Chief Yeo will plan to discuss these matters with the Department of Commerce and USTR during this week’s visit to the U.S."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.