Briefing Session on U.S. Import Regulation Systems for Steel, Petrochemicals, and More
The government will hold an explanatory session on the laws that serve as the basis for U.S. trade restriction measures, including the U.S. Trade Expansion Act, the Tariff Act, and the International Emergency Economic Powers Act (IEEPA).
The Ministry of Trade, Industry and Energy announced that in response to the U.S. announcement of a 25% tariff on steel and aluminum and plans for reciprocal tariffs, it will hold the 3rd "Industry-specific U.S. Import Regulation System Briefing" on the 25th at the ASEM Building in Seoul.
Since the inauguration of the new U.S. administration, the Ministry has been holding industry-specific briefings selecting trade issues that could directly or indirectly affect Korean exports to the U.S., in collaboration with a law firm experienced in handling trade issues, following anti-dumping and countervailing duties.
In particular, considering that the U.S. administration recently announced the imposition of a 25% tariff without exceptions on steel and aluminum and began reviewing reciprocal tariffs, this 3rd briefing focused on U.S. domestic laws that the U.S. may invoke as grounds for tariff increases, such as Section 232 of the Trade Expansion Act, Section 338 of the Tariff Act, and IEEPA. Attendees from industries including steel, aluminum, and petrochemicals listened to explanations about various U.S. trade restriction measures and participated in a Q&A session on key issues.
Section 232 of the Trade Expansion Act stipulates that if certain imports are deemed a threat to national security or undermine economic self-sufficiency, the President may impose import restrictions and tariffs. During his first term in 2018, President Donald Trump applied Section 232 citing national security, imposing a 25% tariff on steel and a 10% tariff on aluminum. There is a possibility of additional regulations through Section 232 in the future.
Section 338 of the Tariff Act allows for tariffs of up to 50% to be imposed on countries that discriminate against U.S. companies. It can also be applied if tariffs, other fees, laws, or regulations targeting the U.S. are deemed discriminatory. Although Section 338 has been used in the past to threaten trade partners, it has never actually been enforced.
IEEPA is a law that allows economic sanctions against other countries, which are normally only possible during wartime, to be imposed during peacetime as well. President Trump announced on the 1st that "tariffs were imposed on Canada, Mexico, and China under IEEPA." Instead of changing tariff policies requiring congressional approval, the President used IEEPA authority to immediately decide on tariff increases. However, a one-month grace period was later granted to Canada and Mexico.
No Geon-gi, Director General of Trade Negotiations at the Ministry of Trade, Industry and Energy, said, "The new U.S. administration is known to link tariff increases with revenue collection and tax reduction policies, and it is expected to actively utilize tariff increase measures. Based on an improved understanding of the U.S. system, we will actively support the industry to prepare for external uncertainties."
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