# US-South Korea trade and tariff tensions

> Live situation record from CLSTR: https://clstr.news/situations/us-south-korea-trade-and-tariff-tensions
> Updated: 2026-08-15T03:40:34.000Z. Sources: 6. Developments: 2.

The United States has imposed a 12.5% tariff on South Korean imports under Section 301 due to forced labor concerns. While key sectors like semiconductors and automobiles are currently exempt, South Korean officials are working to ensure that any additional tariffs resulting from U.S. investigations into industrial overproduction do not exceed a 15% ceiling established in a 2022 trade pact.

As trade tensions escalate, South Korea has dismissed its chief trade negotiator, Yeo Han-koo. While the Ministry of Personnel Management has not disclosed specific reasons for the dismissal, the government stated the decision is unrelated to ongoing Korea-US tariff negotiations. Yeo has expressed opposition to rumors regarding personal misconduct and indicated he may pursue legal action.

This leadership change occurs as Industry Minister Kim Jung-kwan engages in Washington to address mounting pressures, including a 15% levy recently imposed on South Korean drones and components. The mission aims to address unresolved trade issues, including investment commitments and potential tariffs resulting from Section 301 investigations.

## Claims

- Any tariffs imposed under the Section 301 investigation will not exceed 15 percent. (disputed by 2 sources)
- South Korea is subject to 12.5 percent tariffs following a Section 301 investigation into forced labor. (disputed by 2 sources)
- Chief trade negotiator Yeo Han-koo was dismissed from his post by the Ministry of Personnel Management. (corroborated by 2 sources)
- The government stated the dismissal is unrelated to Korea-US tariff negotiations. (corroborated by 2 sources)
- The US is investigating 16 economies, including South Korea, regarding alleged excess industrial capacity. (corroborated by 2 sources)
- The US has imposed a 15 percent tariff on South Korean drones and related components. (corroborated by 2 sources)
- Industry Minister Kim Jung-kwan traveled to Washington to address bilateral trade issues. (corroborated by 2 sources)
- Yeo Han-koo is considering legal action against allegations of personal misconduct. (corroborated by 2 sources)

## Timeline

### 2026-08-15: South Korea's chief trade negotiator dismissed amid US tariff pressure

South Korea's chief trade negotiator Yeo Han-koo has been dismissed amid rising US tariff pressures on Korean exports, including drones and products linked to forced labor investigations.

6 sources. https://clstr.news/cluster/south-korea-dismisses-chief-trade-negotiator-amid-us-tariff-pressure

### 2026-07-26: South Korea faces 12.5% US forced‑labour tariff, seeks to keep total below 15%

The US levied a 12.5% forced‑labour tariff on South Korean imports and may add an over‑production tariff; Seoul is pushing to keep the total at or below the 15% cap agreed in its trade deal and avoid a worse‑of

3 sources. https://clstr.news/cluster/south-korea-faces-125-us-forcedlabour-tariff-seeks-to-keep-total-below-15

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Cite as: US-South Korea trade and tariff tensions. CLSTR, https://clstr.news/situations/us-south-korea-trade-and-tariff-tensions