Tariff baseline

: Korea must defend the 15% tariff ceiling and adapt to a new era of US protectionism

Trade disputes are supposed to end. America's latest tariff overhaul suggests they may simply change form. The latest US decision to impose new tariffs of up to 12.5 percent on South Korea and other trading partners points to a larger reality.

Washington's rapid shift from temporary global duties to new Section 301 tariffs shows that protectionism is no longer a temporary negotiating tactic but an enduring element of economic policy.

The sequence of events tells the story. As temporary worldwide tariffs expired, the Office of the US Trade Representative immediately imposed new Section 301 duties on Friday, ranging from 10 percent to 12.5 percent on imports from 60 countries.

Although the Trump administration justified the action as a response to shortcomings in forced labor enforcement, the timing underscored a broader determination to preserve tariffs regardless of legal setbacks.

The pattern matters more than the statute behind it. After one statutory authority was struck down, another quickly replaced it. The US administration has already demonstrated its willingness to move from emergency powers to balance-of-payments provisions, then to Section 301, while also invoking other long-dormant trade laws in separate disputes.

The legal foundation may change. The strategic direction has not.

Nor is this merely a Trump phenomenon. Large US fiscal deficits make tariff revenue increasingly attractive, while bipartisan support for rebuilding domestic industry has strengthened protectionist instincts.

Tariffs now serve several objectives at once: generating revenue, encouraging domestic production and strengthening Washington's bargaining position. Future US administrations may alter the tools, but reversing the broader trajectory will only become harder.

For Seoul, the immediate priority is preserving the 15 percent ceiling established under last year's bilateral agreement. The new 12.5 percent tariff remains within that limit, and Washington has reaffirmed that the agreement will be respected. The reassurance is welcome. It is not enough.

Another Section 301 investigation into alleged structural excess capacity is already underway. If Washington imposes additional duties, the combined tariff burden could exceed the agreed ceiling unless explicit exemptions or offsets are provided.

Given Washington's readiness to deploy new legal authorities, Korea cannot rely solely on verbal assurances. Every new tariff should be measured against the existing agreement, and negotiations must continue until that commitment is reflected in implementation rather than statements alone.

Seoul should negotiate from a position of strength by treating its planned investments in the US not merely as concessions exchanged for lower tariffs, but as strategic assets that advance core American priorities.

Cooperation in energy infrastructure, the newly launched shipbuilding partnership and the MASGA initiative directly support US industrial renewal and national security objectives.

Seoul should use those contributions to secure practical benefits, including postentry tariff exclusions for sectors where US industry cannot readily replace Korean capabilities, such as advanced batteries, power-grid equipment and specialized shipbuilding.

Trade negotiations should also remain insulated from unrelated bilateral disputes. Allowing political disagreements or other diplomatic frictions to spill into commercial talks would only weaken Korea's negotiating position.

Businesses, meanwhile, should stop waiting for tariffs to return to pre-Trump levels. Planning for a long-term operating environment with tariffs between 10 percent and 15 percent is now the prudent assumption.

Maintaining market share will depend less on price competition than on technological leadership, specialized manufacturing and products that American customers cannot easily substitute.

The greatest mistake would be to treat every new tariff announcement as another temporary disruption. The evidence now points in one direction: Managed trade is no longer an interruption to globalization but part of its new architecture. Korea's long-term advantage lies in turning its vital industrial strengths into negotiating leverage that Washington cannot afford to ignore.

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