Korea among 16 economies in U.S. Section 301 probe, potential tariffs loom

The U.S. Trade Representative said it has opened a Section 301 investigation into 16 economies to lay the groundwork for possible additional tariffs after the dissolution of reciprocal tariffs. The action targets Korea, China, Japan, Taiwan, the European Union, India, and other partners.

Among the 16 economies named are Korea, China, Japan, Taiwan, the European Union, and India. The USTR said the probe will examine whether foreign governments engage in unfair or discriminatory trade practices that distort competition and affect U.S. commerce.

Section 301 of the Trade Act gives the United States authority to remedy “unfair” or discriminatory actions by foreign governments, including by imposing tariffs.

The move follows a development on the 20th of last month, when, after a Supreme Court ruling that nullified reciprocal tariffs, President Trump announced the immediate imposition of a 10% tariff on all U.S. trading partners under Section 122 and signaled that a Section 301 investigation would proceed.

The USTR indicated the investigation will cover a range of practices, including subsidies that encourage production and export, wage-control policies, and other barriers to foreign goods that may lead to overproduction and lower prices for the American market. Korea is singled out for allegedly recording a large or persistent U.S. trade surplus, with concerns centered on sectors such as electronic equipment, automobiles, steel, and ships.

The agency also said that the scope could eventually extend to issues like digital services taxes, drug pricing, and rice market access.

While stressing that existing trade agreements with Korea and Japan would be maintained, the USTR warned that additional tariffs could be imposed depending on the findings of the 301 review.

Observers view the move as a step that may be driven more by a desire to recoup tariff revenue lost after reciprocal tariffs were voided than by broader aims of promoting fair trade. For U.S. readers, the outcome could affect the cost and availability of electronics, autos, steel, and ships produced in or sourcing from these economies, with implications for supply chains and market prices.