Cheong Wa Dae vows close coordination with US to preserve 15% tariff deal

Cheong Wa Dae said Friday it would work closely with Washington to ensure the 15% tariff rate agreed between the two countries is upheld, including under the still-ongoing Section 301 oversupply investigation, after the Trump administration imposed forced-labor tariffs on 60 major economies under Section 301 of US trade law.

"The two countries share an understanding that the tariff agreement must be honored," a Cheong Wa Dae official said.

On South Korea effectively being subject to a 12.5% forced-labor tariff, the official explained that "the forced-labor Section 301 tariffs were imposed on 60 major countries based on whether they have enacted legislation banning imports of goods produced with forced labor."

The Office of the United States Trade Representative announced at 5 p.m. Wednesday (local time) that it would finalize tariffs of 10 to 12.5 percent on 60 countries over imports of goods produced using forced labor.

The announcement came just seven hours before the expiration of the 10 percent global tariff introduced after the Supreme Court struck down the reciprocal tariffs in February.

For South Korea and Japan, the rules set a combined ceiling of 12.5 percent: if a product's most-favored-nation tariff rate falls below 12.5 percent, the forced-labor tariff will make up the difference; if the MFN rate is already 12.5 percent or above, the forced-labor tariff will be set at zero.

The USTR said the approach "is consistent with agreements such as reciprocal trade agreements and is appropriate to encourage these economies to establish and effectively enforce prohibitions on the importation of goods produced with forced labor."

The forced-labor tariffs take effect at 12:01 a.m. Thursday (local time) — kicking in the moment the 10 percent global tariff expires.