Trade minister discusses measures addressing U.S. forced labor-linked tariffs

Lead

South Korean officials have called on the United States to resolve recent trade disputes, including proposed tariffs linked to forced-labor import bans, within the boundaries of the bilateral trade agreement reached last year. The calls came after the Office of the U.S. Trade Representative (USTR) proposed imposing duties of 10% or 12.5% on imported goods from 60 economies over their alleged failure to enforce bans on products made with forced labor.

According to a statement from Trade Minister Yeo Han-koo's office, Yeo met with U.S. Trade Representative Jamieson Greer on the sidelines of the OECD Ministerial Council Meeting in Paris on Wednesday. Yeo said he made clear that "not only the outcomes of the latest Section 301 probe but also other future bilateral trade issues should be addressed within the framework of the Korea-U.S. tariff agreement rather than through the imposition of new tariffs."

Coverage Comparison

Multiple reports from Yonhap News Agency, all citing official South Korean sources, corroborate the core facts. Each report emphasizes a slightly different angle: one focuses on Industry Minister Kim Jung-kwan's conversation with Commerce Secretary Howard Lutnick, another on the presidential office's response, and a third on the trade minister's broader diplomatic engagements. All agree that the USTR's proposal stems from a Section 301 investigation into forced labor-related import practices, and that South Korea, along with China and Japan, is among 54 economies that could face the higher 12.5% tariff.

The consistency across these reports suggests a well-established narrative, though no independent verification from U.S. sources is included. A separate Yonhap report notes that in March the USTR also opened a trade inquiry into South Korea and 15 other economies over alleged "unfair" trade practices related to "structural" excess capacity and production.

Key Claims

The central claim, reported by all five sources, is that the USTR proposed tariffs of 10% or 12.5% on goods from 60 economies following a Section 301 probe. South Korea, China, and Japan are identified as among 54 economies that would face the 12.5% rate.

Another widely reported claim is that the U.S. reaffirmed, through both Greer and Commerce Secretary Howard Lutnick, that South Korea would not face tariffs beyond those agreed in last year's bilateral deal. Under that deal, the U.S. lowered its reciprocal tariffs on South Korea from 25% to 15%, in exchange for Seoul's $350 billion investment pledge.

Industry Minister Kim Jung-kwan said that after a video call with Lutnick, the U.S. side "once again confirmed that no tariffs beyond the level agreed under last year's tariff deal will be imposed on South Korea." In a separate statement, Cheong Wa Dae, South Korea's presidential office, said the government would "ensure that the balance of benefits under the existing South Korea-U.S. tariff agreement will not be compromised."

Trade Minister Yeo Han-koo also discussed countermeasures with related ministries on June 16, according to a later report. He was quoted as saying, "The government will work closely with related ministries, with national interests as the top priority, while enhancing the competitiveness of our businesses and diversifying export markets."

Perspectives

The South Korean government's perspective, expressed through its ministers and presidential office, is that the proposed tariffs are unjustified under the bilateral agreement and that Seoul will actively participate in the Section 301 proceedings. As one official said, "The government will actively respond by submitting a written opinion and holding a public hearing."

The U.S. perspective is presented indirectly through the actions of the USTR and Commerce Department. Their reaffirmation of the bilateral deal suggests a willingness to exempt South Korea from the higher tariffs, but the proposed rates indicate a broader concern about forced labor enforcement across many economies.

No independent analysis from U.S. officials or trade experts is included in the provided reports, so the full rationale for including South Korea among the 54 economies remains subject to the USTR's ongoing investigation.