As the United States signaled it would impose an additional 12.5% tariff on Korea for "allowing imports of products made with forced labor," the government said it would soon begin consultations with the U.S. side.
The Ministry of Trade, Industry and Resources said on the 3rd that "Yeo Han-koo, head of the Office of the Minister for Trade, will soon contact Jamieson Greer, the U.S. Trade Representative (USTR), to discuss issues related to the announcement."
USTR on the 2nd (local time) announced the results of an investigation based on Section 301 of the Trade Act. The results came about three months after the related probe began and center on imposing high additional tariffs on 60 trading partners, including Korea. It said countries did not do enough to block imports of goods made with forced labor, creating an unfair competitive environment. Korea, along with 54 economies including Japan and China, was subjected to a 12.5% tariff.
However, USTR excluded from the tariff list items subject to measures under Section 232 of the Trade Expansion Act, certain minerals and raw materials with insufficient domestic production in the United States, and some aircraft and pharmaceuticals.
The 12.5% tariff rate is not final. Written opinions will be accepted through the 6th of next month, and it will be finalized after a public hearing on the 7th of the same month.
The Ministry of Trade and Industry (MOTI) said, "Since the launch of USTR's investigation into the import ban on products made with forced labor, our government has closely consulted with relevant ministries and major organizations," adding, "Through this, we have submitted a written opinion stating that Section 301 measures are inappropriate and unnecessary, while communicating closely with USTR through bilateral consultations and other channels."
It added, "Through procedures such as submitting opinions and holding a public hearing scheduled going forward, the government will actively explain our efforts to eradicate forced labor, and, taking into comprehensive account the ongoing Section 301 probe into overproduction and other matters, will do its utmost to ensure that the balance of benefits under existing Korea-U.S. tariff agreements is not undermined."