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Korea 'not making predictions' as Trump unsheathes new trade war weapon

Published: 23 Feb. 2026, 19:40 Updated: 23 Feb. 2026, 20:07

U.S. President Donald Trump speaks during a press briefing at the White House following the Supreme Court's ruling that Trump had exceeded his authority when he imposed tariffs, in Washington on Feb. 20. [REUTERS/YONHAP]

The Donald Trump administration is considering wielding a new tariff weapon, Section 301 of the Trade Act, to impose country- and product-specific duties after the U.S. Supreme Court blocked its reciprocal tariffs.

Concerns are growing that Korea’s key export items, including automobiles and semiconductors, could fall within the scope of the section.

“We have opened Section 301 investigations of Brazil and China,” U.S. Trade Representative Jamieson Greer said in an interview with ABC on Sunday. “We expect to be initiating investigations related to things like industrial excess capacity. This will cover a lot of these countries in Asia that have overcapacity.”

Trump's ongoing "Plan B" envisions using Section 122 of the Trade Act — which allows tariffs of up to 15 percent for 150 days to address trade deficits — as a temporary bridge. During that period, Washington would conduct investigations under Sections 301 and 232 of the Trade Expansion Act, laying the groundwork for maintaining tariffs over the longer term.

Section 301 permits tariffs in response to unfair trade practices by other countries, while Section 232 allows duties on grounds of national security.

“The [Section] 122 is likely a five-month bridge during which studies on Section 232 tariffs and Section 301 are done,” said U.S. Treasury Secretary Scott Bessen in an interview with CNN Sunday. “And I think it's highly likely that those tariffs will rise up and that the [Section] 122 could disappear after 5 months. So, you know, this is more of a bridge than a permanent facility.”

U.S. Trade Representative Jamieson Greer speaks with reporters at the White House in Washington on Oct. 30, 2025. [REUTERS/YONHAP]

Korea could also fall within the scope of such measures. Korea recorded a $49.5 billion trade surplus with the United States last year.

While it is too early to tell whether Korea will be included in a Section 301 probe — and the Korean government said it is “not making any predictions” — Seoul must address various trade issues to avoid becoming a target, Industry Minister Kim Jung-kwan said after chairing a joint public-private meeting Monday.

Item-specific tariffs under Section 232 are also a concern. Korean steel and automobiles are already subject to such duties, and investigations are underway into semiconductors and pharmaceuticals.

“In addition to expanding the scope of tariffs and raising tariff rates, the Trump administration is likely to respond by leveraging various nontariff barriers, such as import licenses,” said Heo Yoon, a professor at Sogang University’s Graduate School of International Studies. “Most of Korea's key exports are already subject to tariffs, and the likelihood of future tariff imposition procedures being unilateral and rushed is a significant concern.”

Steel products are seen piled up at a port in Pyeongtaek, Gyeonggi on Feb. 23. [NEWS1]

Section 301 is administered by the Office of the U.S. Trade Representative (USTR). The USTR has previously raised concerns about Korea’s regulation of platform companies, restrictions on the overseas transfer of high-precision mapping data and quarantine measures for agricultural and livestock products. U.S. investors in Coupang have also petitioned the USTR for an investigation.

“Washington could impose targeted high tariffs on core industries such as automobiles and semiconductors through alternative measures,” said Choi Byung-il, head of the Trade Strategy & Innovation Hub at law firm Bae, Kim & Lee. “Since Trump could overturn tariff negotiations for political reasons, the Korean government may need to adopt an aggressive response strategy, such as easing nontariff barriers or investing in the Alaskan liquefied natural gas project.”

Industry Minister Kim Jung-kwan, center, attends a public-private joint meeting to discuss response to U.S. tariff policies at the Korea Planning & Evaluation Institute of Industrial Technology headquarters in Jung District, central in Seoul on Feb. 23. [NEWS1]

The Korean government said it will maintain the current framework of bilateral tariff consultations while managing trade risks.

“If we adhere to the strategic investment memorandum of understanding signed with the United States, Washington is unlikely to demand more than agreed,” said Deputy Prime Minister and Finance Minister Koo Yun-cheol at the National Assembly on Monday. “We are also negotiating nontariff barriers within the scope outlined in the fact sheet.”

Korea is preparing data to demonstrate that it does not engage in unfair trade practices, Koo said in response to questions about a possible Section 301 investigation.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY AHN HYO-SEONG, KIM HYOUNG-GU [[email protected]]