As the world braces for U.S. President Donald Trump’s impending tariffs, South Korea has announced a special investigation into potential violations of its free trade agreement with the U.S. regarding country of origin labels, the Korea Customs Service (KCS) disclosed on Tuesday.
South Korea is among a select group of 20 countries, and one of the three from Asia-Pacific, that benefits from a free trade pact with the U.S. This agreement eliminates almost all tariffs on traded goods between the two nations.
The KCS plans to scrutinize exports heading to the U.S. to ensure compliance with origin markings. This effort aims to combat any attempts by companies to falsely label foreign products as South Korean to enhance domestic product legitimacy and protect market integrity.
KCS is proactively safeguarding South Korea domestic enterprises, a KCS representative remarked, highlighting concerns from the prior Trump administration’s tendency for stringent U.S. verifications post-tariff hikes.
The investigation will target goods vulnerable to mislabeling, particularly those under U.S. anti-dumping tariffs or closely monitored by American customs officials, the KCS said.
Following the imposition of significant tariffs on imports from China, Canada, and Mexico that failed to adhere to free trade conditions, the Trump administration is expected to announce reciprocal tariffs against major trade partners by April 2, 2025.
