[Editorial] US imposes new 12.5% tariffs; must maintain '15% ceiling'

The United States has initiated the imposition of tariffs ranging from 10% to 12.5% on goods from approximately 60 economic blocs, encompassing over 80 countries including South Korea. This measure, implemented under Section 301 of the Trade Act, targets the alleged inadequate enforcement of a ban on products manufactured using forced labor.

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The US Trade Representative's office has begun imposing tariffs of 10-12.5% on goods from 60 economic blocs (about 80 countries), including South Korea, citing inadequate enforcement of a system prohibiting the import of products made with forced labor.

South Korea and Japan are subject to the higher tariff rate of 12.5%. This action comes as the US Trade Representative's office is also conducting a separate Section 301 investigation into "structural overcapacity," raising the possibility of additional tariffs. The South Korean government is prioritizing diplomatic efforts to ensure the final tariff rate does not exceed the 15% threshold agreed upon in a prior bilateral understanding last November.

The article notes that the current measures reflect the Trump administration's determination to maintain retaliatory tariffs, initially introduced under the International Emergency Economic Powers Act (IEEPA) citing national security threats. After the Supreme Court invalidated the IEEPA basis in February, a temporary 10% universal tariff was applied under Section 122 of the Trade Act. With that provision expiring, the US has now shifted to Section 301.

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South Korea is subject to 12.5%, along with Japan.

While Section 301 allows the executive branch to impose tariffs in response to unfair or discriminatory trade practices, its application to nearly all US trade (over 99%) is a departure from its previous selective use and could reignite legal challenges. South Korea must now treat US tariffs as a constant factor in its trade strategy, focusing on preventing disadvantages compared to competitors and ensuring the final tariff rate remains within the agreed limit, especially given the unpredictable nature of the US administration and the likelihood that protectionist policies will persist.

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The government must focus all its efforts on protecting national interests by maintaining the '15% tariff rate ceiling' agreed upon between South Korea and the US last November.