South Korea challenges U.S. forced labor tariffs as trade friction deepens

Seoul's formal objection to the proposed 12.5% levy adds another front to Washington's broad trade enforcement campaign, raising risks for supply chains across 60 economies.

By Handelsavisen Newsroom 2026-07-07 15:56 UTC Read on handelsavisen.no →

South Korea has formally challenged the U.S. Trade Representative’s proposal to impose tariffs on imports linked to forced labor, labeling the measure "unwarranted" and calling for a revision.

The diplomatic pushback marks a significant escalation in trade tensions between Washington and Seoul, two key allies in the Indo-Pacific region.

The proposed tariffs, which could reach 12.5%, target imports from 60 economies that the U.S. argues have failed to adequately ban goods produced using forced labor.

South Korea’s objection highlights the growing friction between U.S. trade enforcement priorities and the economic interests of its trading partners.

The move comes after a South Korean trade association previously urged USTR Jamieson Greer to defer implementation of the tariffs, signaling deep concern within the business community.

For investors, the development underscores the expanding scope of U.S. trade policy beyond traditional tariff disputes.

Sources & citations

[1]Yonhap — 1 report observed

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