U.S. Trade Representative Jamieson Greer speaks at the Senate Finance Committee hearing on the "2026 President’s Trade Policy Agenda" held at the Dirksen Senate Office Building in Washington on the 22nd (local time). Representative Greer did not specify a timeline for the announcement of tariff measures to replace the 10% temporary tariff. [Photo = Screen capture from the U.S. Senate Finance Committee video]

Although the U.S. 10% temporary import surcharge is set to expire on the 24th (local time), the Donald Trump administration has yet to confirm the timing for announcing the subsequent Section 301 tariffs under the Trade Act. This has raised the possibility of last-minute negotiations regarding whether the 12.5% additional tariff proposed for South Korea will be reduced and which items will be subject to it.

U.S. Trade Representative (USTR) Jamieson Greer attended the "2026 President’s Trade Policy Agenda" hearing held by the Senate Finance Committee at 10:00 a.m. Eastern Time on the 22nd. Speaking to reporters after the hearing regarding follow-up tariff measures driven by forced labor concerns, he stated, "I have to talk to the President, and the President has to sign the directives," adding, "I am not focused on a specific timeline."

According to The Wall Street Journal (WSJ), Representative Greer avoided giving a definitive answer on whether Section 301 tariffs would be finalized before the 10% temporary tariff expires, simply telling reporters to "stay tuned." This suggests greater scheduling uncertainty than initial expectations that a final decision on forced labor-related measures would be announced soon.

President Trump imposed a 10% temporary surcharge on most imports, excluding certain exceptions, by invoking Section 122 of the Trade Act last February after the U.S. Supreme Court invalidated tariffs based on the International Emergency Economic Powers Act (IEEPA). According to the White House proclamation, this tariff expires at 12:01 a.m. Eastern Time on July 24. Under Section 122, the President can independently impose tariffs for a maximum of 150 days, and any extension requires congressional legislation.

However, Representative Greer has not ruled out the possibility of re-imposing the same tariffs under Section 122 once the 150-day period ends. He has previously stated his position that Section 122 does not explicitly prohibit the re-imposition of tariffs. Whether they will be re-imposed and the legality of such a move remain undetermined.

If the Section 122 tariff ends as scheduled, there would be no issue of overlap between the 10% temporary surcharge and the new Section 301 tariffs. The structure would simply involve the expiration of the 10% surcharge, followed by the implementation of new 10% or 12.5% additional tariffs under Section 301.

However, if the Trump administration re-imposes the Section 122 tariffs while simultaneously implementing Section 301 tariffs, the potential for overlapping application becomes a new point of contention. The current Section 122 proclamation states that the 10% surcharge is applied in addition to other tariffs, taxes, and fees, with the exception of Section 232 trade expansion tariffs. Unless the new proclamation or final USTR notice includes a specific exclusion clause for overlap, the possibility of both Section 122 and Section 301 tariffs applying concurrently cannot be ruled out.

Last month, the USTR proposed an additional tariff of 10% on economies that have promised to ban or implement systems to block imports of forced labor-made goods, and 12.5% on others. South Korea was included in the 12.5% bracket on the grounds that it lacks a system explicitly banning the import of foreign products made with forced labor. Items already subject to Section 232 tariffs—such as automobiles, steel, and aluminum—as well as crude oil, pharmaceuticals, and certain critical minerals, were classified as exceptions in the proposal stage.

Minister of Trade, Industry and Energy Kim Jung-kan is visiting Washington from the 22nd to the 25th (local time) to discuss trade and investment issues with U.S. officials and congressional leaders, including Commerce Secretary Howard Lutnick and Energy Secretary Chris Wright. The Ministry of Trade, Industry and Energy described the visit's objectives as strengthening strategic investment in the U.S., implementing Korea-U.S. tariff discussions, and fostering cooperation in shipbuilding and energy.

While the Ministry did not explicitly list the forced labor Section 301 tariffs as an official agenda item for Minister Kim's meetings, the fact that cabinet-level discussions are taking place just as the final announcement is imminent suggests there may still be room for last-minute adjustments to South Korea’s tariff rate or scope of application.

National Security Advisor Wi Sung-lac stated on the 22nd, "I understand that even if Section 301 measures are taken, they will not exceed the comprehensive tariff rates being discussed between Korea and the U.S.," adding that consultations with the U.S. are ongoing.

However, whether the 15% tariff ceiling that has been discussed between the two countries applies only to the Section 301 tariffs themselves, or to the total burden including base tariffs and other additional duties, remains to be clarified in the final U.S. announcement.

Consequently, the final announcement is expected to center on key issues: whether the 12.5% rate proposed for South Korea is maintained or reduced to 10%; which items are subject to or exempted from the tariffs; the implementation date; whether Section 122 tariffs will be re-imposed; the overlap with Section 301 tariffs; and the relationship with the 15% Korea-U.S. tariff cap.