The Donald Trump administration announced on August 19 (local time) that it will add 407 product categories to the list of steel and aluminum derivative products subject to a 50% tariff.
The Bureau of Industry and Security (BIS) of the Department of Commerce made this announcement on its website, stating, "As a result, these products will be subject to a 50% tariff rate based on their steel and aluminum content."
This measure is based on Section 232 of the Trade Expansion Act and includes wind turbines and their parts and components, mobile cranes, bulldozers, other heavy equipment, railway vehicles, furniture, compressors and pumps, and hundreds of other products.
Section 232 of the Trade Expansion Act grants the president the authority to restrict imports through tariffs or other appropriate measures if the importation of certain items is determined to threaten U.S. national security.
Jeffrey Kessler, Assistant Secretary for Industry and Security at the Department of Commerce, stated, "Today's measure expands the application of steel and aluminum tariffs and closes loopholes, supporting the continued revitalization of the U.S. steel and aluminum industries."
There are concerns that this measure could also negatively impact South Korean industries.
According to the Korea International Trade Association, construction machinery such as refrigerators and freezers, auto parts, elevators, transformers, tractor parts and engines, wires and cables, elevators, forklift trucks, and hoisting and loading equipment are included in the new tariff list. In addition, other auto parts and engine parts that were not previously subject to auto parts tariffs are now included. Some cosmetic containers with a high aluminum content are also expected to be affected by the tariffs.
According to the Korea International Trade Association, the value of exports to the U.S. affected by the newly added tariffs amounted to $11.89 billion last year.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
