Almek, Exempted from Tariffs Following US Department of Commerce Preliminary Anti-Dumping Ruling

The U.S. government has issued a preliminary anti-dumping duty determination on aluminum products imported from 15 countries, including South Korea. Almek, a U.S. electric vehicle parts exporter, received a 0% duty rate determination, signaling a positive outlook for future exports to the U.S.

According to Almek on the 3rd, on the 2nd (local time), the U.S. Department of Commerce issued a preliminary determination that aluminum extrusion products exported to the U.S. from 15 countries, including China, Mexico, and Vietnam, are suspected of dumping. If an anti-dumping determination is made, annual reviews will require payment of anti-dumping duties.

Anti-dumping duties are imposed to protect domestic industries from damage caused by products supplied in large quantities at low prices. The duties are levied on the difference between the normal value and the unfairly discounted price of the imported products. This measure aims to protect domestic industries and prevent unfair trade practices.

As a result of this preliminary determination, a total of 165 companies worldwide received specific dumping rates, and among them, five companies including Almek were determined to be exempt from duties. Other companies will be uniformly subject to dumping rates by country.

This determination was made at the request of the U.S. Aluminum Extrusion Association and the Steelworkers Union. They requested an anti-dumping investigation in October last year on aluminum extrusion products imported from 15 countries, including South Korea.

Currently, Korean aluminum extrusion products imported into the U.S. are duty-free under the Korea-U.S. Free Trade Agreement (FTA). However, the U.S. complainants have argued that Korean aluminum extrusion products are sold below normal value and have demanded a 66.43% tariff be imposed.

The Department of Commerce's investigation covered all aluminum extrusion products imported into the U.S. from October 2022 to September last year. The Department selected Almek and SMI, the two Korean aluminum manufacturers with the highest market shares, as representative companies for the investigation.

Almek received a no-dumping preliminary determination with a 0% rate, while SMI was assigned a 2.42% rate. The remaining domestic companies will be subject to the 2.42% dumping rate applied to SMI for aluminum extrusion products exported to the U.S. Among the 15 countries, only five companies including Almek were granted duty exemptions.

On the same day, Chinese aluminum received a punitive tariff of 376.85%. Additionally, high tariffs were imposed on major U.S. export countries such as Turkey (73.43%) and Vietnam (41.84%). South Korea was charged the relatively lowest rate of 2.42%, allowing it to maintain its competitiveness in exports to the U.S.

Almek views this preliminary determination as a positive factor for future U.S. exports. Since Almek will not pay dumping duties, it is expected to receive continued interest from domestic and international companies. Currently, Almek is establishing a production plant in Montgomery, Alabama, which is expected to drive rapid business expansion in the North American market.

Last year, Almek's overseas business accounted for 74.1% (160.1 billion KRW) of total sales, and its average annual sales growth rate over the past four years has exceeded 40%.

An Almek official stated, “In an environment of increasing U.S. import regulations and expanded scope, as well as the increase of Section 301 tariffs on Chinese aluminum, this preliminary determination is expected to act as an opportunity to expand exports. Along with price competitiveness, we will lead the market as a leading company in aluminum extrusion products for the U.S. market based on Almek’s technological competitiveness and overseas business expansion.”