U.S. widened scope of 50% steel, aluminum tariffs takes effect

MEANWHILE the Trump administration expands its 50-percent tariffs on steel and aluminium to include a long list of new derivative products starting today that is August 18th.

Our correspondent Moon Ji-young has details.

The broadened tariff measures apply to products imported into the U.S., or released from bonded warehouses, starting Monday.

These additional tariffs, initially announced last Friday by the Trump administration, primarily target the steel and aluminum content within these derivative products.

Specifically, a 50 percent tariff will be levied only on the value attributable to the steel and aluminum components.

The expansion follows requests from U.S. domestic industries in May, which were then solidified by the U.S. Department of Commerce after a period of stakeholder consultation in June.

These measures fall under Section 232 of the U.S. Trade Expansion Act, citing national security as the rationale.

However, Korea has strongly asserted that Korean products do not pose a threat to U.S. national security.

Despite these appeals, the Commerce Department largely approved its domestic industry's claims, excluding only about 60 items already under other Section 232 measures or investigations.

The burden on the Korean exports is bound to be heavy.

"The 50 percent tariff hike will severely diminish the price competitiveness of Korean firms, likely shrinking their U.S. market share. With many previously untaxed derivative products now included, Korean firms face significant risks of losing existing clients, struggling to find new ones, and grappling with increased production costs and long-term contract issues with U.S. partners."

Concerns are growing in Seoul, with the Trade Ministry on Monday stating that the U.S. could further expand its 50 percent tariff list for steel and aluminum derivative products.

These additional items are expected as early as September, fueled by ongoing requests from U.S. industries.

The Trade Ministry has pledged to significantly expand its support programs for SMEs affected by import regulations.

This includes broadening consultation services for verifying steel and aluminum content and providing proof of origin,

while also substantially reducing the financial contributions required from companies for these support services.

Moon Ji-young. Arirang News.