US Imposes 'Forced Labor Tariffs' on 60 Countries, South Korea Effectively Hit With 12.5%

The Donald Trump administration imposed "forced labor tariffs" ranging from 10% to 12.5% on 60 countries on the 23rd (local time) under Section 301 of the Trade Act.

South Korea has effectively been hit with a 12.5% tariff.

The move comes just ahead of the expiration of the "10% global tariff" introduced following the U.S. Supreme Court's ruling in February invalidating mutual tariffs, serving as a replacement set to take effect right before the deadline.

The Office of the United States Trade Representative (USTR) finalized tariffs of 10% to 12.5% on the 60 countries on this day, citing issues with the import of products produced using forced labor.

Along with Japan, South Korea was subjected to an effective tariff rate of 12.5%.

The USTR had previously announced plans to impose such tariffs in early June.

Following procedures such as gathering rebuttal comments from the targeted countries, the final tariffs were confirmed on this day.

Earlier in March, the USTR initiated separate investigations, claiming that the import of products manufactured through structural overproduction and forced labor was burdening U.S. trade.

Section 301 of the Trade Act grants the executive branch the authority to respond to unfair or discriminatory practices and policies of foreign governments through measures such as imposing tariffs, and South Korea became subject to both investigations.

In February, the U.S. Supreme Court ruled illegal the mutual tariffs that the Trump administration had imposed on various countries based on the International Emergency Economic Powers Act (IEEPA).

In response, the Trump administration imposed a 10% global tariff on countries worldwide under Section 122 of the Trade Act, but because it could only remain in effect for a maximum of 150 days, its expiration deadline was set for midnight on the 24th.

This structure fills the void left by the mutual tariffs nullified by the court ruling with Section 122 global tariffs, and as the global tariff expiration period approaches, replaces them with Section 301 tariffs.
※ Please note: This article was translated by AI and may contain errors.