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The Korea Herald
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THE INVESTOR
March 28, 2024

Industrials

US’ next trade targets steel, automobiles: report

  • PUBLISHED :January 24, 2018 - 17:48
  • UPDATED :January 24, 2018 - 17:48
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[THE INVESTOR] The Donald Trump administration’s next target of trade restrictions will be steel products and automobiles, after its recent decision to slap tariffs on imported washing machines and solar panels produced by Korean manufacturers, according to a state-funded trade and investment promotion organization on Jan. 24.

“Following safeguard measure on Korean washers and solar panels, the US will target automakers and steelmakers to regulate imports,” said the Korea Trade-Investment Promotion Agency in its report on economic outlook for 2018.

The report said there will be strong moves from the US steel industry and US Congress on inexpensive steel products from Korea and China mainly.

The US has continued to press Korean steelmakers, arguing they export low-priced steel to the US on the back of government subsidies. It has imposed anti-dumping tariffs and countervailing duties on most key steel products from Korea, including steel pipes for oil wells, oil pipelines and hot-rolled and cold-rolled steel sheets. 

On Jan. 11, US Secretary of Commerce Wilbur Ross submitted to Donald Trump a report related to Section 232 on whether steel imports infringe on US national security. Within 90 days, the president is slated to take measures, for instance imposing tariffs on imported products if he finds the imported steel products threaten the national security. 

The US Department of Commerce also recently increased personnel related to anti-dumping regarding steel imports and is running a system to monitor and analyze steel imports, according to KOTRA.

As to the auto industry, the US is pressuring the Korean government to revise the two countries’ free trade agreement to revive the 2.5 percent tariff that had been imposed on Korean automakers but was abolished in 2016 when the agreement took effect. Automobiles are the industry where the US currently sees the greatest trade deficit between the two nations.

The Korean and the US sides had the first round of talks on Jan. 5 to discuss a revision to the agreement. The government said much of the talk centered on automobiles, although it did not disclose details.

Trump has pressured global automakers, including GM, Ford and Toyota, to increase production and jobs in the US. “Under the pressure, Korean automakers are also reviewing the expansion of production facilities in the US,” KOTRA said.

Trump has been facing escalated international criticism for unilaterally pushing trade issues. He has been pointed out for ignoring the US International Trade Commission’s recommendation that washers produced in a nation that had signed a free trade agreement with the US should be excluded from safeguard measures.

Academics, including Nobel winner Joseph Stiglitz and former director of the National Economic Council Lawrence Summers, said renegotiation of the agreement is a big mistake during a conference hosted by the American Economic Association early this month. The forum stressed that the US deficit came from product competitiveness and not the trade agreement.

“Given that the US shows moves to aggressively protect its own industry, Korea should no longer passively defend its industries and should be more active in raising its voice to protect key and vulnerable industries,” said Choi Won-mok, a law professor at Ewha Womans University.

By Shin Ji-hye/The Korea Herald (shinjh@heraldcorp.com)

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