U.S. Raises Countervailing Duties on Korean Hot-Rolled Steel by Around 1 Percentage Point

The U.S. government has finalized its decision to raise countervailing duties imposed on certain products from Korean steelmakers by around 1 percentage point (p), increasing the rate to between 1.5% and 2.2%.

Steel products are piled up at the export yard of Pyeongtaek Port, Gyeonggi Province. 2025.7.8. Photo by Kang Jinhyung

Since the Trump administration began imposing a 25% tariff on foreign steel products in March and further raised this tariff rate to 50% starting in June, the impact of this slight increase in countervailing duties is expected to be minimal.

According to trade authorities on August 14, the U.S. Department of Commerce recently published in the Federal Register the 'Final Results of the Administrative Review of Countervailing Duties on Certain Hot-Rolled Steel Products from Korea.'

The U.S. Department of Commerce stated, "It has been determined that Hyundai Steel and POSCO received subsidies subject to countervailing duties during the review period from January to December 2022," and decided to impose countervailing duties of 2.21% on Hyundai Steel and 1.47% on POSCO, respectively.

As a result, the countervailing duty on Hyundai Steel's hot-rolled steel products will increase by 1.45 percentage points, from the current 0.75% to 2.21%. For POSCO's products, the rate will rise by 0.61 percentage points, from 0.86% to 1.47%.

This decision by the U.S. Department of Commerce is identical to the preliminary determination made in November of last year.

The U.S. Department of Commerce has been investigating this case on the grounds that the Korean government provided subsidies by supplying electricity needed for steel production to Hyundai Steel and POSCO at preferential rates.

An official from the Ministry of Trade, Industry and Energy stated, "The countervailing duties imposed by the United States on steel continue to fluctuate depending on the results of each investigation," and added, "We plan to continue responding to the U.S. raising the issue of electricity subsidies."