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National Security Adviser Wi Sung-lac acknowledged Wednesday that Washington could impose “additional tariffs” under Section 301 of the U.S. Trade Act or other provisions.
"The Section 301 issue is fundamentally related to forced labor and excess production, but it depends on the interpretation,” Wi said in a press briefing at the Blue House in central Seoul as he announced President Lee Jae Myung’s overseas trip to the United States and South America later this week.
Wi added “there could be additional tariffs, and it could be through Section 301, or through another provision.”
The Donald Trump administration plans to introduce a new Section 301 tariff regime, replacing the temporary 10 percent global tariff imposed in February under Section 122 of the Trade Act, which expires on Friday. Section 301 is a powerful mechanism that allows the United States to take retaliatory measures, such as imposing tariffs, against unfair or discriminatory trade practices by other countries. Korea, China and Japan are among economies that would be subject to an additional 12.5 percent tariff.
"To my understanding, even if Section 301 measures are taken, they will not exceed the high tariff rates previously agreed upon between Korea and the United States,” Wi said. He noted that the United States recently imposed a 50 percent tariff on a range of Canadian goods, but that that was under a different, more obscure legal provision, Section 338 of the Tariff Act of 1930.
Last year, President Lee and U.S. President Donald Trump reached a trade deal agreeing to lower the reciprocal tariff rate from 25 percent to 15 percent as Korea pledged an investment package of $350 billion in the United States.
Wi noted that among pending issues between Seoul and Washington, “the single most significant and important matter is investment [in the United States], followed by the Coupang issue."
The White House and Congress has criticized the Korean government for allegedly discriminating against U.S. companies over their investigation into the massive data breach at e-commerce giant Coupang.
Wi said that the problem is that “there appears to be a difference from the starting point” with Washington regarding the details of the case.
“Some on the other side do not view it as 33 million cases, but rather 3,000 cases based on statements made by the suspect,” Wi noted. He underscored the matter is being handled “in accordance with prescribed legal procedures," stressing there was no discriminatory treatment.
Wi also clarified amid the escalated tensions in the Middle East due to the U.S.-Iran war that no new demands for specific contributions, such as the dispatch of warships to the Strait of Hormuz, have been raised by Washington so far.
“While there have not been any specific requests from the U.S. side regarding warships, we are reviewing various options as we have approached this with the stance of making substantial contributions,” Wi said. However, he noted that such contributions are inevitably linked to parliamentary procedures, thus "there are limits to our capabilities.”
On Friday, President Lee will set off on an 11-day, five-country tour which will take him to the United States, Brazil, Chile, Argentina and Germany as Korea aims to boost tech sector and economic cooperation.
Over Friday and Saturday, Lee will meet with global AI leaders and Silicon Valley venture capital firms in San Francisco, Wi said in the press briefing joined by Kim Yong-beom, presidential chief of staff for policy.
President Lee will be flanked by a business delegation of conglomerate heads, including Samsung Electronics Executive Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Executive Chair Euisun Chung and Naver founder and board chair Lee Hae-jin, as he pushes his three-megaproject initiative aimed at building out semiconductors, physical AI and AI data centers.
President Lee will attend the San Francisco AI summit and meet with global AI leaders such as Nvidia CEO Jensen Huang, OpenAI CEO Sam Altman, Anthropic CEO Dario Amodei and Broadcom CEO Hock Tan.
The San Francisco trip will also serve as an occasion for memorandums of understanding to be signed between Korean companies and global big tech firms.
President Lee will also announce his so-called San Francisco AI declaration, outlining Korea's vision to become “irreplaceable” in the global AI ecosystem and enhance global cooperation.
From Sunday through Wednesday, President Lee will make a state visit to Brazil for a summit with President Luiz Inacio Lula da Silva, which also includes a welcome ceremony, MOU signing ceremony, a joint press conference and a state luncheon. This trip reciprocates Lula's state visit to Korea in February.
President Lee next heads to Chile on Wednesday for a summit with President Jose Antonio Kast and a business roudtable. Lee begins a trip to Argentina on July 30 for summit talks Argentine President Javier Milei.
The trip is expected to boost economic and security partnerships with the three resource-rich South American countries, Wi said, noting Brazil, Chile, and Argentina have abundant critical minerals, energy and food.
Wi said that Korea plans to “strengthen strategic partnerships with these countries regarding critical mineral supply chains and deepen discussions on diversifying sources of food and energy imports.”
As the last stop, Lee will have a layover in Germany, where he will meet with the Korean community in Frankfurt before returning to Korea on Aug. 3.
BY SARAH KIM [[email protected]]
