SEOUL: South Korea said Friday (July 24) it would continue consultations with the Trump administration to ensure that new US tariffs imposed under Section 301 of the Trade Act do not push the tariffs on Korean goods above the 15 per cent agreed upon by the two countries last year.
“South Korea and the United States share the understanding that the tariff agreement should be honored,” a Cheong Wa Dae official said on condition of anonymity.
“We plan to consult closely with the US side to ensure that the 15 per cent ultimately agreed upon between the two countries is upheld, and includes (tariffs that may be imposed under) the ongoing Section 301 investigation into overcapacity,” the official said.
South Korea secured a reduction in Washington’s proposed tariff rate from 25 per cent to 15 per cent after pledging $350 billion in US investments under a joint fact sheet signed in November 2025.
The presidential office’s remarks came after the Trump administration announced Thursday that it would impose tariffs of up to 12.5 per cent beginning Friday on goods from 60 US trading partners, including South Korea.
The tariffs were imposed under Section 301 of the Trade Act of 1974 following investigations into whether those economies had taken sufficient steps to prohibit imports of goods produced with forced labor.
Under the measure, economies that prohibit imports produced with forced labor, or have committed to doing so, face a 10 per cent tariff, while most others are subject to a 12.5 per cent rate.
South Korea was placed in a group subject to a tariff top-up rather than a flat 12.5 per cent surcharge along with Japan and Switzerland.
If a product’s existing most-favored-nation tariff is below 12.5 per cent, Washington will impose an additional Section 301 duty sufficient to bring the combined rate to 12.5 per cent.
A product already subject to an MFN tariff of 12.5 per cent or more will face no additional duty.
The measure therefore effectively sets a minimum tariff rate of 12.5 per cent for covered South Korean goods.
The new duties mark the latest step in US President Donald Trump’s effort to rebuild his tariff regime after the Supreme Court struck down his administration’s reciprocal tariffs in February.
With a temporary 10 per cent global tariff set to expire Friday, Washington has turned to Section 301 as an alternative legal basis for imposing new trade barriers.
On a separate track, Washington is pursuing another Section 301 investigation into structural overcapacity in manufacturing.
The inquiry covers South Korea, China, Japan, the European Union and 12 other trading partners, examining whether their policies encourage production beyond domestic demand, leading to excess exports that displace US manufacturing or deter investment.
The investigation into structural excess manufacturing capacity could lead to a second round of tariffs, making it a more pressing concern for Seoul.
Ahead of the final announcement, Minister of Trade, Industry and Resources Kim Jung-kwan and Trade Minister Yeo Han-koo made an urgent visit to Washington for a series of high-level talks.
Kim met US Commerce Secretary Howard Lutnick on Wednesday and Thursday, while Yeo met US Trade Representative Jamieson Greer on Tuesday to convey the South Korean government’s position. - The Korea Herald/ANN
