US Steel and Aluminum 25% Tariffs... 253 Domestic Derivative Products Subject to Imposition

166 Items Subject to Immediate Tariffs
87 Items Deferred... Future Tariffs Based on Content

As the United States imposes an additional 25% tariff on steel and aluminum, it has been revealed that 253 related derivative products domestically will be affected.

According to the Ministry of Trade, Industry and Energy on the 10th, based on the U.S. international Harmonized System (HS) codes, 166 derivative products of steel and aluminum such as bolts, nuts, and springs will be subject to a 25% tariff on the total product price starting from the 12th (local time).

The remaining 87 items, including automotive parts such as bumpers, bodies, suspensions, as well as home appliances and aircraft parts, will have their tariff application deferred until further notice from the U.S. Department of Commerce. However, these deferred items are expected to be subject to a 25% tariff based on the steel and aluminum content value in the future.

Since disclosing the list of derivative products on the 18th of last month, the Ministry has held public-private relay countermeasure meetings and practical discussions on import regulations together with industry associations, trade associations, and the Korea Chamber of Commerce and Industry. Through this, the Ministry has communicated the steel and aluminum derivative product measures down to the corporate level and has been checking anticipated damages and difficulties.

In particular, the practical discussions pointed out that small and medium-sized enterprises (SMEs) have relatively weak response capabilities. Accordingly, the Ministry plans to support SMEs to prevent unexpected disadvantages regarding items subject to tariffs based on steel and aluminum content.

Additionally, in line with the detailed schedule of measures from the U.S. Department of Commerce, the Ministry will cooperate with the Korea Chamber of Commerce and Industry and legal and accounting firms to provide consulting and, if necessary, assist with customs documentation preparation for SMEs exporting derivative products to the U.S.

Minister An Deok-geun of the Ministry of Trade, Industry and Energy stated, “There is a high possibility that SMEs, which lack experience in quickly gathering information or preparing supporting documents, will suffer damage from this measure,” and added, “We plan to provide consulting support targeting small-scale SMEs as soon as tariffs on deferred items are implemented.”