Industry Opinions Solicited Through Federal Register
Decision on Expanding Tariff List Within 60 Days
Automobile Parts Opinions to Be Collected Starting in October
The administration of former U.S. President Donald Trump has initiated procedures to expand the list of items subject to tariffs, including steel, aluminum, and automobiles, which were previously notified as tariffed items by category. If the scope of tariffs on both steel and automobiles is expanded, it is expected that South Korea will face greater export disruptions and increased pressure to expand production within the United States.
According to the U.S. Federal Register on September 16 (local time), the U.S. Department of Commerce has begun soliciting industry opinions through the Federal Register regarding which derivative products made from steel or aluminum should be added to the list of items subject to tariffs. The Department of Commerce will collect opinions until September 29 and plans to decide within 60 days whether to add new items to the tariff list.
The United States currently imposes a 50% tariff on steel, aluminum, and derivative products made from these raw materials, based on Section 232 of the Trade Expansion Act, which grants the President the authority to restrict imports for national security reasons. In addition, a process has been established that allows American manufacturers and associations to request the government to designate new items for tariffs, with opinions to be collected every May, September, and January.
Based on the opinions received in May of this year, the Department of Commerce decided in June to impose a 50% tariff on steel used in home appliances such as refrigerators, dryers, washing machines, and dishwashers.
On the same day, the Department of Commerce also provided guidance in the Federal Register on how to request that automobile parts be added to the list of items subject to a 25% tariff.
Manufacturers producing automobiles and automobile parts in the United States, as well as associations representing them, may submit their opinions, and the Department of Commerce will accept these submissions every January, April, July, and October.
As a result, the number of types of automobile parts subject to a 25% tariff is expected to increase, which will likely place a greater burden on South Korea's automobile parts industry exporting to the United States. According to the Korea International Trade Association, South Korea's automobile exports to the United States amounted to $34.7 billion last year, with automobile parts exports totaling $8.2 billion.
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