US prepares new tariffs as 10% global levy expires; 15% cap for South Korea in question

The United States is on the verge of implementing new tariffs as a 10% global tariff, enacted under the Trump administration, expires on July 24. This follows a US Supreme Court decision earlier this year that deemed reciprocal tariffs based on the International Emergency Economic Powers Act (IEEPA) unlawful. The Trump administration had announced the 10% global tariff on March 24, based on Section 122 of the Trade Act, with a 150-day expiration.

Now, the US Trade Representative (USTR) is preparing a new tariff strategy using Section 301 of the Trade Act, which grants the administration authority to respond to unfair or discriminatory trade practices by foreign governments. US trade officials are currently investigating countries based on two key areas: structural overproduction and forced labor. These investigations could lead to significant trade actions.

Amidst these developments, attention is focused on whether the previously agreed-upon 15% tariff cap between South Korea and the US will be upheld. The expiration of the current tariff and the impending implementation of new measures under Section 301 raise questions about the future of trade relations and the stability of existing agreements.