Korea downplays US Section 301 investigations

Industry Minister Kim Jung-kwan, left, and Trade Minister Yeo Han-koo enter a briefing room at Government Complex Seoul, Nov. 14, 2025. Newsis

Seoul's top trade negotiators dismissed concerns Thursday about potential fallout from the Office of the United States Trade Representative’s (USTR) decision to launch investigations into Korea and 15 other economies under Section 301 of the Trade Act of 1974.

The law allows the U.S. to impose unlimited tariffs in retaliation against foreign practices it considers unfair and harmful to American commerce.

Describing Washington’s latest measure as a forewarned follow-up action after the U.S. Supreme Court struck down “reciprocal” tariffs based on the International Emergency Economic Powers Act (IEEPA), the government said tariffs on Korean goods would return to 15 percent — the level agreed upon last November — once the investigations conclude. Currently a 10 percent global tariff is applied to Korean products through a new imposition following the court ruling.

“The USTR has repeatedly explained the U.S. government’s plan to leverage Section 301 to restore tariff rates to the levels agreed upon before the Supreme Court’s ruling,” Trade Minister Yeo Han-koo told reporters.

“During a meeting in Washington last week, the USTR expressed its intent to comply with agreements signed with Korea and other trade partners.”

Industry Minister Kim Jung-kwan, who traveled to Washington with Yeo to meet U.S. Commerce Secretary Howard Lutnick and USTR Jamieson Greer, also told lawmakers that the probe aligns with the U.S. government’s plan to reinstate previous tariff levels.

Cheong Wa Dae said the government plans to work closely with the U.S. to ensure that the balance of interests reached in the Korea-U.S. tariff agreement is maintained and that Korea is not more disadvantaged compared with other major economies.

U.S. Trade Representative Jamieson Greer speaks to media in Brussels, Nov. 24, 2025. Reuters-Yonhap

Following the Supreme Court’s ruling last month that the IEEPA tariffs were unconstitutional, the Donald Trump administration imposed a 10 percent global tariff under Section 122 of the Trade Act of 1974, which permits tariffs of up to 15 percent for a maximum of 150 days.

Although Trump has warned that the global tariff could rise to 15 percent, he has yet to implement that increase.

As a result, tariffs on Korean goods were reduced from 15 percent to 10 percent, except for product-specific tariffs on automobiles, steel and aluminum, which remain subject to Section 232 of the Trade Expansion Act of 1962, allowing duties on imports deemed threats to national security. The auto tariff is 15 percent, while those on steel and aluminum are 50 percent.

Because the ongoing Section 301 investigations are expected to take four to five months, Seoul expects Washington will seek to restore tariff rates before the Section 122 tariff expires in mid-July.

“The best way to stabilize the situation is to keep the promise we made in the trade agreement,” Yeo said, emphasizing the significance of a special law legitimizing Korea’s $350 billion investment in the U.S., which was approved Thursday by the National Assembly. In January, Trump threatened 25 percent tariffs on Korean goods, citing perceived delays in Korean investments in U.S. industries.

Highlighting that the U.S. investigations target overcapacity and excess production in manufacturing sectors, the trade minister also dismissed any connection with Seoul’s probe into Coupang over multiple issues, including a massive data breach last November that affected more than 33 million users.

Earlier this week, Coupang's board members and investors withdrew their Section 301 petition against the Korean government, citing Washington’s plan to advance broader Section 301 actions.

In its Federal Register notice, the USTR pointed to Korea’s persistent trade surplus with the U.S., calling it evidence of structural overcapacity and excess production.

"Korea maintains a global goods trade surplus, led by exports in sectors such as electronic equipment, automobiles and auto parts, machinery, steel, and ships and marine vessels," it read. "The Korean government has acknowledged the need to cut capacity in the petrochemicals sector."

Greer, however, warned of possible additional Section 301 probes related to digital service taxes, revealing plans to launch separate investigations into 60 countries over goods produced with forced labor.

Later on Thursday, Korea's Ministry of Foreign Affairs said the U.S. side took issue with the Coupang probe, when Michael DeSombre, the U.S. assistant secretary of state for East Asian and Pacific affairs, met in Seoul with Chung Eui-hae, deputy foreign minister for political affairs.

Yeo said, “We told the USTR that it is unreasonable to launch Section 301 investigations into the ongoing probe into Coupang, explaining that its data leak affected nearly 80 percent of the Korean population and that the Korean government’s investigations are being conducted in accordance with law and order.”

The foreign ministry said it agreed with the U.S. side to prevent the Coupang probe from causing disruptions to fulfilling the Korea-U.S. investment agreement.