Approving Saudi Uranium Enrichment and Imposing Tariffs: The US Hits a Nerve
On July 24, the Donald Trump administration imposed 12.5% “forced labor” tariffs on South Korea. The United States has also announced plans to impose tariffs targeting excess industrial capacity. Last November, South Korea committed to investing $350 billion in the United States and reached agreements over trade and security, including uranium enrichment, in exchange for reducing tariff rates from 25% to 15%. However, if U.S. tariffs exceed 15%, the agreement could be fundamentally shaken. The United States signed a nuclear cooperation agreement with Saudi Arabia on July 22, approving uranium enrichment for nuclear power. For South Korea, this in particular hits a nerve, as talks between South Korea and the United States remain at a standstill.
After the Supreme Court struck down reciprocal tariffs in February, the United States then imposed 10%-12.5% forced labor tariffs on more than 80 countries under Section 301 of the Trade Act. On top of this, the United States plans to impose tariffs targeting excess industrial capacity on 16 countries, including South Korea. If South Korea is hit with industrial overcapacity tariffs of 2.5% or more, then its overall tariff rate would surpass the agreed 15%. The Korean government must negotiate with the United States to avoid a situation in which it shoulders tariffs higher than 15%, while still making the earlier agreed-upon investments.
The United States' decision to permit Saudi Arabia to enrich uranium for civilian nuclear power is something that South Korea should not take lightly. After signing a nuclear cooperation agreement with the United States in 1974, South Korea has thus far been unable to enrich uranium or reprocess spent nuclear fuel without U.S. consent. Additionally, while Saudi Arabia does not have any nuclear reactors at present, South Korea is already operating 26 reactors. Saudi Arabia has also publicly declared that, should Iran develop nuclear weapons, it would follow suit. By contrast, South Korea has decided not to pursue such capabilities. Last year, the United States and South Korea reached an agreement in which the United States “supports the process that will lead to the ROK’s civil uranium enrichment and spent fuel reprocessing for peaceful use.” However, after eight months of implementation talks, the United States has remained noncommittal. An explanation is needed for why Saudi Arabia and South Korea are being treated so differently. Using Saudi Arabia as a precedent, South Korea must become assertive in negotiations for uranium enrichment.
South Korea’s investment in the United States is also coming to fruition. The Korea–U.S. Shipbuilding Partnership Center, which will oversee the Make American Shipbuilding Great Again Initiative, opened its doors in Washington on July 23. It is expected that its first venture will be announced in August or September. The security talks that South Korea hopes to advance concerning uranium enrichment, spent fuel reprocessing and nuclear submarine construction must be expedited. Instead of wearing South Korea down with tariffs or negotiations, the United States should respect the alliance and approach negotiations seriously.
After the Supreme Court struck down reciprocal tariffs in February, the United States then imposed 10%-12.5% forced labor tariffs on more than 80 countries under Section 301 of the Trade Act. On top of this, the United States plans to impose tariffs targeting excess industrial capacity on 16 countries, including South Korea. If South Korea is hit with industrial overcapacity tariffs of 2.5% or more, then its overall tariff rate would surpass the agreed 15%. The Korean government must negotiate with the United States to avoid a situation in which it shoulders tariffs higher than 15%, while still making the earlier agreed-upon investments.
The United States' decision to permit Saudi Arabia to enrich uranium for civilian nuclear power is something that South Korea should not take lightly. After signing a nuclear cooperation agreement with the United States in 1974, South Korea has thus far been unable to enrich uranium or reprocess spent nuclear fuel without U.S. consent. Additionally, while Saudi Arabia does not have any nuclear reactors at present, South Korea is already operating 26 reactors. Saudi Arabia has also publicly declared that, should Iran develop nuclear weapons, it would follow suit. By contrast, South Korea has decided not to pursue such capabilities. Last year, the United States and South Korea reached an agreement in which the United States “supports the process that will lead to the ROK’s civil uranium enrichment and spent fuel reprocessing for peaceful use.” However, after eight months of implementation talks, the United States has remained noncommittal. An explanation is needed for why Saudi Arabia and South Korea are being treated so differently. Using Saudi Arabia as a precedent, South Korea must become assertive in negotiations for uranium enrichment.
South Korea’s investment in the United States is also coming to fruition. The Korea–U.S. Shipbuilding Partnership Center, which will oversee the Make American Shipbuilding Great Again Initiative, opened its doors in Washington on July 23. It is expected that its first venture will be announced in August or September. The security talks that South Korea hopes to advance concerning uranium enrichment, spent fuel reprocessing and nuclear submarine construction must be expedited. Instead of wearing South Korea down with tariffs or negotiations, the United States should respect the alliance and approach negotiations seriously.
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