The U.S. government has issued a final anti-dumping duty determination on aluminum products imported from 14 countries, including South Korea. Almek, which exports aluminum electric vehicle parts to the U.S., received a 0% tariff rate in the final determination following a preliminary ruling in May, completely freeing it from the risk of U.S. anti-dumping duties. On the other hand, companies that received anti-dumping duty rates of 2% or higher will be subject to annual reviews and must continue paying anti-dumping duties. With this ruling, Almek, having secured strong competitiveness, will be able to more actively target the U.S. market.
According to the Korea International Trade Association, on the 27th (local time), the U.S. Department of Commerce issued a final determination that aluminum extrusion products exported to the U.S. from 14 countries, including China, Mexico, and Vietnam, are subject to dumping.
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 of the imported product and the unfairly discounted price. This measure aims to protect domestic industries and prevent unfair trade practices.
As a result of this final determination, a total of 165 companies worldwide received specific dumping rates, and among them, five companies including Almek received a 0% tariff rate. Other companies are uniformly subject to country-specific dumping rates.
This investigation was requested by the U.S. Aluminum Extrusion Association and the Steelworkers Union, who in October last year called for an anti-dumping investigation into aluminum extrusion products imported from 14 countries including South Korea. Accordingly, the U.S. Department of Commerce conducted document reviews and on-site inspections by country and announced the final results.
The Department of Commerce’s investigation covered all aluminum extrusion products imported into the U.S. from October 2022 to September last year. South Korea selected Almek and SMI, the two companies with the highest market shares among about ten aluminum manufacturers, as representative companies for the investigation.
In the final determination, Almek was cleared with a 0% rate, while SMI received a 3.13% rate, up from the preliminary rate of 2.42%. The remaining domestic companies will be subject to the 3.13% dumping rate applied to SMI for aluminum extrusion products exported to the U.S. Among the 14 countries, only six companies including Almek received tariff exemption determinations.
On the same day, Chinese aluminum products received a punitive tariff of 376.85%. Additionally, high tariffs were imposed on major U.S. export countries such as Vietnam (41.84%) and Taiwan (34.30%). South Korea was charged the relatively lowest rate of 3.13%, allowing it to maintain its competitiveness in exports to the U.S.
Almek views this final determination as a positive factor for future U.S. exports. Since Almek does not pay dumping duties, it is expected to receive love calls from overseas companies seeking to replace volumes from China and Vietnam, which are subject to high tariffs, as well as from domestic companies. Currently, Almek has started operating its first-phase logistics plant in Montgomery, Alabama, U.S., and is building a second-phase production plant, anticipating 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 the current environment of increasing U.S. import regulations and expanded scope, as well as the Section 301 tariff hikes on Chinese aluminum, we have been receiving a flood of love calls since the preliminary determination. We expect items under review after this final determination to lead to order contracts, and we will thoroughly prepare to move into mass production.” He added, “Along with price competitiveness, we will lead the market as a leading company in aluminum extrusion products for the U.S. by leveraging Almek’s technological competitiveness and overseas business expansion.”
Meanwhile, the U.S. Department of Commerce will finalize whether tariffs will be applied after the U.S. International Trade Commission (ITC) issues its injury determination on the U.S. industry by mid-November.
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