Industry minister again heads for Washington amid growing U.S. tariff pressure

South Korea's Industry Minister Kim Jung-kwan is set to head to Washington in response to escalating U.S. tariff pressure, sources disclosed on Sunday. The visit coincides with a challenging period for bilateral trade relations, as Seoul faces mounting U.S. pressure to expedite its investment commitments under a trade deal. The U.S. government anticipates releasing the outcome of its investigation into alleged overproduction pursuant to Section 301 of the Trade Act by the end of the month.

Earlier this year, Washington announced fresh tariffs on imports from 60 trading partners, ranging from 10 to 12.5 percent, following an inquiry into forced labor under Section 301 of the Trade Act of 1974. Consequently, South Korea is now subject to a 12.5 percent tariff in conjunction with Japan and Switzerland. Separate from the forced labor-related inquiry, the U.S. government is also scrutinizing 16 economies, including South Korea, for alleged excess industrial capacity under the same trade law.

Kim previously stated that any tariffs imposed under the Section 301 investigation would not surpass 15 percent, adhering to the Seoul-Washington tariff accord reached last year. In 2022, South Korea exported $122.9 billion to the U.S. and imported $73.4 billion, making the U.S. the second-largest trading partner for South Korea.