South Korea Says Any New US Tariffs Should Stay Within 15% Cap in Trade Deal

Wi Sung-lac, head of the presidential office's national security office, said on July 22 that the US could impose additional tariffs under Section 301 of the Trade Act or other legal provisions. Seoul's understanding, he said, is that even if Washington takes action under Section 301, the tariff rate would not exceed the level agreed between South Korea and the US.

Speaking to reporters at the presidential office press center, Wi said the US had imposed tariffs on countries, seen some of them invalidated by the Supreme Court, and was reviving tariffs under other provisions. Section 301 is basically tied to forced labor and overproduction, he added, though how it is applied depends on the US interpretation.

After the US Supreme Court ruled in February that the Trump administration's reciprocal tariffs were unlawful, the US government imposed a 10% tariff on countries under Section 122 of the Trade Act. With the 150-day tariff period set to expire on July 24, Washington may announce a new tariff policy. The Office of the United States Trade Representative placed South Korea on a list for an additional 12.5% tariff, citing inadequate import bans related to forced labor. The tariff ceiling under the South Korea-US trade agreement is 15%.

Wi said US tariffs on Canada were set at 50% under yet another legal provision. Because Washington is invoking clauses that have rarely been used, tariffs could be imposed through several channels, he said. Seoul is consulting with the US side and providing the necessary data and explanations.

Kim Hyung-kyu, Hankyung.com reporter khk@hankyung.com