Washington: U.S. President Donald Trump's administration announced its final decision to impose new tariffs of up to 12.5 percent on South Korea, Japan, and 58 other trading partners due to concerns over forced labor practices.
According to Yonhap News Agency, the Office of the U.S. Trade Representative (USTR) revealed these new tariffs, ranging from 10 percent to 12.5 percent, will be effective starting Friday. This decision follows investigations into 60 economies under Section 301 of the 1974 Trade Act, assessing their efforts to ban imports made with forced labor.
The announcement coincides with the expiration of the administration's temporary 10-percent global tariffs. These tariffs had been implemented following the Supreme Court's decision to invalidate the Trump administration's country-specific "reciprocal tariffs" in February.
Under this new tariff plan, products from South Korea, Japan, and Switzerland will face additional tariffs until the total U.S. tariff rate reaches 12.5 percent. Products already subject to most-favored nation (MFN) tariffs of 12.5 percent or higher will not incur new Section 301 duties.
For products from Taiwan and the European Union (EU), the tariff rate will be capped at 10 percent. The USTR has also introduced a 10 percent Section 301 tariff on goods from Canada, Mexico, Argentina, Britain, and 14 other countries, while a 12.5 percent tariff applies to other investigated countries.
Jamieson Greer of the USTR stated, "The United States has had a forced labor import ban for nearly a century and rigorously enforces it. It's well past time for our trading partners to do the same." He emphasized that the action is aimed at correcting human rights abuses and trade distortions to improve worker welfare globally.
Last month, the USTR proposed this 12.5 percent tariff on South Korea and other economies over forced labor issues. In response, the South Korean government urged the U.S. to reconsider, labeling the proposal as "unwarranted" and "disproportionate" considering the circumstances of Asia's fourth-largest economy.
In addition to investigating forced labor concerns, the USTR has conducted Section 301 investigations into South Korea, China, Japan, and 13 other trading partners to address "unfair" trade practices related to structural excess capacity and production. These investigations reflect the Trump administration's efforts to replace the invalidated reciprocal tariffs imposed under the 1977 International Emergency Economic Powers Act (IEEPA).