US President Donald Trump delivers remarks in Washington on Thursday (local time). [AP]
US President Donald Trump delivers remarks in Washington on Thursday (local time). [AP]

The Trump administration imposed tariffs of 10 to 12.5 percent on 60 countries under Section 301 of the Trade Act, targeting imports produced with forced labor. South Korea, along with Japan, was hit with 12.5 percent — effectively the highest rate applied.

The Office of the United States Trade Representative announced Thursday (local time) that it had finalized the tariffs after determining that imports of goods made with forced labor were harming US industries.

South Korea and Japan were both assigned the 12.5 percent rate, the highest in the new framework.

The move is part of a new tariff structure assembled after the US Supreme Court ruled in February that reciprocal tariffs imposed under the International Emergency Economic Powers Act were unlawful.

After those reciprocal tariffs were struck down, the Trump administration imposed a temporary 10 percent global tariff on all countries under Section 122 of the Trade Act. That measure could remain in effect for no more than 150 days and was set to expire at midnight Friday.

The USTR had signaled its intent to impose forced-labor tariffs earlier last month, then solicited comments from affected countries before finalizing the rates Thursday.

The USTR had launched separate investigations in March into structural overproduction and the importation of goods made with forced labor, alleging that such practices burdened US trade.

Section 301 of the Trade Act grants the administration authority to impose tariffs and other measures in response to unfair or discriminatory practices by foreign governments. South Korea was subject to both investigations.

The Supreme Court ruled in February that the reciprocal tariffs the Trump administration had levied under IEEPA were unlawful. The administration responded by imposing a 10 percent global tariff under Section 122, which carried a maximum duration of 150 days — a deadline that fell at midnight Friday.

The Section 122 global tariff filled the void left by the invalidated reciprocal tariffs, and the new Section 301 forced-labor tariffs stepped in as the Section 122 measure reached its expiration.


mokiya@heraldcorp.com