Blue House seeks to cap U.S. tariff burden at 15 percent after Section 301 levy

The Blue House vowed to continue discussions with the United States to ensure that “the 15 percent tariff rate agreed upon by the two countries is maintained” as an additional levy could follow the 12.5 percent forced labor tariff imposed Thursday.

“The two countries share the understanding that their tariff agreement should be upheld, and we will closely consult with the United States to ensure that the agreed 15 percent rate is maintained, including through the ongoing Section 301 investigation into overproduction,” a Blue House official said Thursday.

The Office of the United States Trade Representative (USTR) finalized forced labor tariffs on 60 economies under Section 301 of the Trade Act after determining whether they had enacted or effectively enforced legislation banning imports of products made with forced labor.

Korea was subject to a 12.5 percent forced labor tariff, but the United States can impose additional tariffs on overproduction in the near future depending on the ongoing investigation. Seoul seeks to ensure that the combined rate of the two tariffs does not exceed the agreed 15 percent.

Last year, Korea lowered the U.S. tariff rate from 25 percent to 15 percent through a trade agreement with the United States that included $350 billion investment package.

The Trump administration’s 10 percent global tariff, imposed after the U.S. Supreme Court ruled in February that reciprocal tariffs were unlawful, is set to expire at midnight on Friday. To replace the measure, the USTR has been investigating countries since March under Section 301 of the Trade Act over issues including overproduction and forced labor.

Section 301 of the Trade Act authorizes the executive branch to respond to unfair or discriminatory practices and policies by foreign governments through measures including tariffs. Korea was subject to both investigations.

BY JEONG HYE-JEONG [[email protected]]