South Korea urges U.S. to revise proposed forced-labor tariffs

South Korea has formally called on the U.S. Trade Representative (USTR) to revise or defer proposed tariffs on South Korean goods over forced labor concerns, with officials describing the measure as "unwarranted" and "disproportionate" to the country's efforts to combat the practice.

The USTR has proposed a 12.5 percent tariff on South Korea and dozens of other economies over their alleged failure to enforce import bans on products made with forced labor. The proposal follows trade investigations into 60 countries, including South Korea, China, and Japan, conducted under Section 301 of the 1974 Trade Act, as the Trump administration seeks to replace "reciprocal" tariffs struck down by the Supreme Court in February.

Coverage comparison

Three separate Yonhap reports, all published between July 6 and July 9, detail South Korea's multi-pronged response to the tariff proposal. The first, dated July 6, focuses on the Korea International Trade Association (KITA) and its chairman Yoon Jin-sik, who submitted comments to USTR requesting a deferral of any additional duties or, alternatively, a reduction in the tariff rate. The second, dated July 7, reports on the South Korean Embassy's formal comments, which label the proposal "unwarranted" and "disproportionate." The third, dated July 9, covers remarks by Lee Seung-heon, a South Korean official at the embassy, during a public hearing on the proposed tariffs.

Key claims

South Korea has consistently argued that the proposed tariff is unjustified, citing its comprehensive measures to prevent forced labor. The embassy's July 7 comment stated that the USTR's conclusion that South Korea imports forced labor-linked goods and burdens U.S. commerce lacks a "factual basis" and "sufficient analysis" of the country's specific circumstances. The embassy emphasized that South Korea is implementing "multifaceted" policies to prevent forced labor inputs, including establishing a domestic legal framework, ratifying international obligations, and encouraging the private sector to exclude forced labor goods from its supply chains.

At the public hearing on July 9, Lee Seung-heon, counselor for trade, industry and resources at the South Korean Embassy, reiterated that "Korea reserves its basic position that action against Korea with regard to the importation of forced labor goods is neither appropriate nor necessary." He also noted that Seoul has introduced and effectively implemented relevant norms "with the aim of eradicating the use of forced labor domestically and globally," including the "Korean Sustainability Disclosure Standards" and promotion of the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct.

Additionally, South Korea has reiterated its commitment to last year's South Korea-U.S. joint fact sheet, which includes a pledge to work together to combat the importation of goods produced with forced labor.

Key claims

The key claims made by South Korean officials and the trade association, as reported by the sources, include:

  • The proposed tariff is "unwarranted" and "disproportionate" given South Korea's actions against forced labor.
  • The USTR's investigation conclusion lacks "factual basis" and "sufficient analysis" regarding South Korea's specific circumstances.
  • South Korea has established a domestic legal framework, ratified international obligations, and promoted private-sector efforts to exclude forced labor goods from supply chains.
  • Korea has asked for "more favorable treatment" if the tariffs are still imposed, suggesting a lower rate or exemptions for certain products.

Perspectives

The perspective of South Korea is detailed across the reports, through the official statements of the Embassy and the KITA.

  • South Korean government: Argues that the proposed tariff is neither appropriate nor necessary, and calls for revision or deferral. It emphasizes its legislative and policy measures against forced labor and reiterates its commitment to cooperating with the U.S. through the joint fact sheet.
  • Korea International Trade Association: Represents the business community, requests deferral of tariffs or a reduction from the proposed rate, and asks for exemptions for goods with low risk of forced labor involvement or lack of evidence linking them to South Korea. The association stresses that South Korea strictly prohibits forced labor through international treaties and domestic laws.