China's Ministry of Commerce responded on Aug. 27 to reports that Washington is weighing an extra 7.5-percentage-point tariff on Chinese products. Unilateral tariffs burden businesses and consumers in both countries, the ministry said, urging that the matter be settled through consultation.

Beijing also restated its standing position that it will take necessary steps to protect the legitimate interests of Chinese firms, without specifying any measures.

How tariffs travel

Additional duties are paid first by importers and then passed through distribution into final prices, in whole or in part. Goods with easy alternative sources tend to shift volume to other countries; goods that are hard to substitute show up as higher prices.

Recent years suggest that tariffs also increase transshipment through production bases outside China — which is why rules-of-origin determination and customs scrutiny have tightened in parallel.

Where Korean firms sit

Korea imports a substantial volume of intermediate goods from China and exports finished products to the United States. Higher U.S.-China tariffs increase the pressure to reorganize supply chains and force renewed checks on origin rules.

It matters directly to Chinese-heritage traders in Korea too. Spelling out in contracts who bears duty costs, and how prices adjust, is the standard way to reduce disputes.