U.S. Threatens Tariffs Over South Korea’s Proposed Tech Regulations
President Donald Trump has threatened “substantial additional tariffs” on South Korea should it proceed with digital trade legislation his administration views as discriminatory against U.S. technology firms, as reported by Fox Business. The ultimatum followed an August 25 meeting with South Korean President Lee Jae-myung, who did not agree to halt the proposed Online Platform Act.
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The Computer & Communications Industry Association estimates that up to $109 billion in U.S. market revenues could be affected by the policies under consideration in South Korea’s National Assembly. Sectors impacted include app stores, search engines, social networking services, operating systems, and online advertising. Market data from the IndexBox platform further indicates that U.S. digital service exports to South Korea represent a significant and growing segment of bilateral trade, underscoring the economic stakes of the dispute.
A State Department spokesperson stated the U.S. is “very concerned by foreign government action that could create a burden that is discriminatory, disproportionate, or designed to transfer significant funds or intellectual property from American companies.” Experts, including Gatestone Institute senior fellow Gordon Chang, warn the proposed laws mirror the EU’s Digital Markets Act and are aimed squarely at dominant American companies like Google, Apple, Amazon, and Meta, while potentially exempting Chinese firms such as Temu, Shein, AliExpress, and TikTok.
Analysts point to a pattern of regulatory actions by the Korean Fair Trade Commission (KFTC), which they describe as unnecessarily aggressive. U.S. companies have reported a lack of due process, a low bar for launching investigations, and the use of tactics like dawn raids and office takeovers. Newly nominated KFTC Chairman Joo Byung-ki has publicly stated a preference not to concede on the proposed Online Platform Act, emphasizing the need to regulate monopolies and abuses of market dominance.
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