The South Korean government has formally requested that the Trump administration reconsider its decision to classify Korea as a forced-labor country and impose a new tariff rate of at least 12.5%. With the US administration signaling tariffs based on Section 301 of the Trade Act this month, the government has joined the Korea International Trade Association, in what appears to be an all-out public-private effort to lower the rate.
According to the Office of the US Trade Representative (USTR) on Wednesday, the Korean government recently stated in a written submission that "USTR's conclusion that Korea imports products made with forced labor and burdens US trade lacks factual basis and sufficient analysis."
The government added that "the International Energy Agency (IEA) report cited by USTR raised no concerns about Korea regarding cases of importing polysilicon produced with forced labor," and argued that "Korea is already implementing multifaceted policies, including establishing a legal framework and ratifying international obligations, to exclude products made with forced labor by the private sector from supply chains."
It further emphasized that "in particular, Korea is committed to fulfilling the pledge in the joint fact sheet from the Korea-US summit to cooperate in eradicating imports of products made with forced labor," and that "Korea believes the US measure is excessive, should be reconsidered, and is neither appropriate nor necessary."
The Korean government added that "if the US nevertheless determines it must impose tariffs, Korea should receive more favorable treatment than initially proposed," and "we respectfully request that these views be fully considered in reflection of our strategic trade and investment agreement and strong bilateral relationship, and that a final decision be made that is mutually beneficial to both nations."
Earlier, USTR announced on the 2nd of last month that it planned to impose additional tariffs of 10% or 12.5% on imports from 60 economies that failed to block trade in products made with forced labor. It included Korea in a group of 54 economies that failed both to introduce and to effectively enforce import bans on goods produced with forced labor, making Korea subject to the 12.5% tariff. The group facing the 12.5% rate includes Korea, along with Australia, Brazil, China, Japan, Russia, the United Kingdom, and Vietnam. Only six economies—Canada, Ecuador, the EU, Indonesia, Mexico, and Pakistan—are subject to the 10% tariff.
In response, the Korea International Trade Association also submitted an opinion to USTR on the 6th under the name of Chairman Yoon Jin-shik, requesting a suspension of the tariff and asking that the US "reconsider the imposition of a 12.5% additional tariff on Korean products." The association also asked that the additional tariff rate be lowered to 10% if a suspension proves difficult.
The tariff is a policy the Trump administration is pursuing to secure an alternative revenue source after the US Supreme Court ruled on February 20 that reciprocal tariffs and fentanyl tariffs based on the International Emergency Economic Powers Act (IEEPA) were unlawful. The Trump administration plans to impose a 10% global tariff with a 150-day term based on Section 122 of the Trade Act by late this month, before imposing tariffs based on Section 301 of the Trade Act on each country.
