President Moon Jae-in quickly congratulated President-elect Joe Biden last week following his projected victory over Donald Trump in the 2020 General Election. In his November
Korean Steel Industry Gets Boost from U.S. Tariff Reductions
Korea’s steel manufacturers received a substantial boost after the Court of International Trade ruled in Korea’s favor in a tariff dispute with the United States. Following that ruling, the U.S. Department of Commerce revised its anti-dumping tariffs to less than half its previous levels, according to reports in trade media across the region.
The earlier rates, set in 2018, had dramatically imposed these high rates on Korea pipeline products of up to nearly 19 percent for some manufacturers for unspecified “dumping” assertions. Korea appealed those tariffs to the Trade Court, and in January the Court instructed the Commerce Department to adjust them downward.
This week, reports appeared suggesting that the rates would be far less than the earlier ones, from 4.23 percent to 9.24 percent depending on the supplier, less than half of its previous highest 18.77 percent rate, according to the industry sources and the Korea International Trade Association.
In 2018, Korea exported pipeline products to the U.S. valued at nearly $350 million. By company, the tariff on pipelines from South Korea’s number two steelmaker, Hyundai Steel Co., comes to 9.24 percent, with that on products made by SeAH Steel Corp. reaching 4.23 percent.
At the time of the 2018 ruling, Commerce Department officials claimed that the new the tariff rates were based on the “particular market situation” regulations that allow for high tariff rates on goods from countries where export prices are believed to have deviated from those of the domestic market, according to a recent report in the Korea Herald. Korean steel manufacturers objected to the high tariffs and filed a complaint with the Trade Court earlier this year.