The US government announced on April 11 (local time) that it will launch Section 301 trade investigations against 16 countries and economic entities, including South Korea, China, and Japan, over manufacturing overcapacity.
The Office of the United States Trade Representative (USTR) published the announcement in the Federal Register, identifying all 16 economic entities subject to investigation: South Korea, China, Japan, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Vietnam, Taiwan, Bangladesh, Mexico, and India.
Regarding South Korea, the USTR stated that "evidence of structural overcapacity and overproduction exists through large-scale or persistent trade surpluses." The agency noted that "Korea maintains a global goods trade surplus centered on exports of electronic equipment, automobiles and parts, machinery, steel, and ships and marine vessels," adding that "Korea's trade surplus expanded significantly to $52 billion in 2024." The USTR also noted that "the Korean government acknowledges the need to reduce production capacity in the petrochemical sector."
South Korea is expected to initiate consultations with the US government. If Washington determines that issues remain unresolved following these talks, tariffs could be imposed. The USTR will accept public comments from April 17 through May 15 and will hold a hearing on May 5. After the US Supreme Court ruled reciprocal tariffs invalid last month, the administration had signaled it would pursue Section 301 investigations to compensate for lost tariff revenue.
This investigation is limited to manufacturing overcapacity. Given that the US government has raised concerns about South Korea's digital sector regulations, there is a high likelihood of additional investigations in that area.
