On November 11, the U.S. Trade Representative (USTR) began a Section 301 investigation targeting 16 economies, including South Korea, in response to a Supreme Court ruling that invalidated specific tariffs. This investigation aims to explore various areas, including digital regulations, pharmaceutical pricing, and the openness of the rice market, which could lead to increased trade pressures on South Korea. The investigation is partly justified by the U.S. reasoning that 'overproduction' in manufacturing strengthened by export subsidies and financial support has led to falling prices and increased U.S. trade surpluses, posing a threat to U.S. industrial competitiveness.

The USTR's logic suggests that the scale of trade surpluses will significantly impact future tariffs, echoing the principles behind previous retaliatory tariffs, described as 'mutual tariffs' in light of trade surpluses. The USTR has indicated that South Korea's inclusion in the investigation stems from its persistent trade surplus, viewed as evidence of structural overproduction. Notably, the investigation also includes other major U.S. trade surplus countries such as China, Japan, and Taiwan, reflecting a broader strategy of addressing perceived inequities in international trade practices.

While the USTR is tasked with consulting and gathering feedback from the targeted governments during the investigation, the nature of the probe suggests a strong possibility that it may ultimately lead to increased tariffs rather than collaborative resolutions. Since the U.S. Supreme Court's ruling recently invalidated tariffs previously set at 15% under the U.S.-Korea trade agreement, only a global tariff of 10% currently applies. Depending on the findings of the Section 301 inquiry, additional tariffs of at least 5% may be anticipated, marking a notable shift in U.S.-Korea trade relations as both nations navigate the implications of these potential measures.