US Imposes 10%-12.5% ‘Forced Labor’ Tariffs on 60 Countries; South Korea Effectively Faces 12.5%

The Trump administration on July 23 imposed “forced labor” tariffs of 10% to 12.5% on 60 countries under Section 301 of the Trade Act. South Korea was effectively subjected to a 12.5% tariff.

The new duties were unveiled just before the 10% global tariff introduced after the Supreme Court’s February ruling voiding reciprocal tariffs was set to expire. The Office of the United States Trade Representative said on July 23 it had finalized tariffs of 10% to 12.5% on 60 countries, citing imports of goods produced with forced labor.

South Korea, along with Japan, was effectively placed in the 12.5% tariff bracket. USTR had signaled the plan in early June.

USTR had opened separate investigations in March, saying structural overcapacity and imports of goods made with forced labor were burdening US trade. The Trump administration then imposed a 10% global tariff on countries worldwide under Section 122 of the Trade Act, but that measure could remain in place for only up to 150 days. Its expiration deadline was midnight on July 24.

The Section 122 global tariff had filled the gap left after reciprocal tariffs were struck down as unlawful. With that tariff expiring, the administration has replaced it with Section 301 duties.

Lee Sang-eun, Washington correspondent, Hankyung.com, selee@hankyung.com