Hanmedia: Machinery, Cans, and Forks Are Not Immune to the U.S. Steel Tariff Bomb
The United States has imposed a 50% tariff on 407 products made of steel and aluminum... At least 1,800 South Korean small and medium-sized enterprises have been hit by the tariff... The losses from this measure are expected to expand further.
Starting in June, the United States imposed a 50% tariff on foreign-produced steel, aluminum, and some derivative products; starting on the 18th, the United States added 407 derivative products using steel and aluminum to the tax list. The taxation method is to impose a 50% tariff on the steel and aluminum content used in the product, while the remaining parts are subject to a 15% reciprocal tariff for South Korea.
South Korea has 1,800 small and medium-sized enterprises that have been exporting machinery and components containing steel and aluminum to the United States, and they have already suffered a first wave of impact. This measure is truly a "tariff bomb." Previously, these companies had enjoyed duty-free benefits under the Korea-US Free Trade Agreement (FTA), but now they not only lose the duty-free benefits and pay a 15% reciprocal tariff, but also face an additional 50% tariff. Moreover, this measure was implemented after the Korea-US tariff negotiations reached a compromise, which is bound to cause even greater shocks. According to Chang Sang-ji, director of the Korea Trade Association's Institute for International Trade and Commerce, "General machinery, one of the top three export categories for South Korea, has been largely included in the tax list."
At 1 p.m. on the same day (0 a.m. local time on the 18th), the U.S. Department of Commerce announced that it would impose tariffs on 407 products (based on U.S. import commodity codes) that are derivatives of steel and aluminum. According to the Korea Trade Association's estimate, the total value of South Korean exports to the United States for new categories in 2024 is approximately 11.89 billion dollars (about 16.47 trillion won).
The new list includes a large number of general machinery such as transformers, elevators, construction machinery, tractors, boilers, air conditioners, and railway parts. In addition, cooking utensils such as spoons, forks, and knives made of steel and aluminum, as well as general consumer goods such as cosmetics, dairy products, wax, detergents, shaving products, and food, are also included. Refrigerators and freezers, which were previously subject only to steel tariffs, have now been added to the aluminum tariff. In food categories, containers such as cans used to hold food may be listed as taxable items.
Source: Chosun Ilbo
Original: www.toutiao.com/article/1840949489203467/
Statement: This article represents the views of the author.