U.S., 232Tariff overhaul lowers duties on some South Korean exports
The United States 1Trade Expansion Act 232announced a proclamation revising tariff measures on derivative steel, aluminum and copper products. For some mobile industrial machinery, including forklifts, bulldozers and tractors, the tariff rate on South Korean goods will be lowered to 15%, with the measures in effect from 6month 8day through 2027year 12month 31day. The government estimates the impact of the tariff reduction at about 23billion dollars.
According to the Ministry of Trade, Industry and Energy, the United States 1Trade Expansion Act 232announced a proclamation revising tariff measures on derivative steel, aluminum and copper products. The proclamation changes tariff rates for certain mobile industrial machinery and some parts. The announcement identified South Korea as a country eligible for tariff reductions.
For some mobile industrial machinery, including forklifts, bulldozers and tractors, the tariff rate will be reduced to 15% when imported from South Korea, which has reached a tariff agreement with the United States. Countries eligible for tariff reductions include Japan, Taiwan, the United Kingdom and EU member states. Imports from other countries will remain subject to the existing tariff of 25%.
Agricultural equipment and air-conditioning systems, which were previously subject to a tariff of 25%, will instead be subject to a tariff of 15%, regardless of whether a tariff agreement is in place. Some items have also newly been included in the tariff coverage. Examples include aluminum printing plates and steel racks.
This tariff reduction will apply, in U.S. local time, from the upcoming8day of2027of the year12month31through ... day. During the period of application, the rules of origin for some items were also eased. The Ministry of Trade, Industry and Energy is assessing the impact on individual companies based on the detailed terms of application.
Previously, for U.S.-made steel,95% or more had to be used in an item for it to qualify for a low tariff of10%. This criterion was the basis for some imports to receive the low tariff. Industry players are reviewing the impact with reference to past cases.
Under this revision, the requirement for using U.S.-made steel has been lowered to85%. This change affects the scope of items eligible for the low tariff. Relevant companies are checking the detailed criteria and origin documentation requirements.
The government has repeatedly asked the U.S. side, including during high-level South Korea-U.S. consultations, for tariff relief in the trillion range to support Korean companies’ exports to and investment in the United States.232The tariff reduction is expected to cover U.S.-bound export items valued at approximately23billion dollars. Further announcements are expected on the specific impact by item and whether the tariff will apply.
Sources: 뉴시스 경제
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