SOUTH KOREA REPORT
The U.S. Department of Commerce has announced tariffs of up to 50% on 407 steel and aluminum derivative products from South Korea.
The department’s Bureau of Industry and Security said this measure would apply to hundreds of products, including wind turbines and their components, mobile cranes, bulldozers, railway vehicles, furniture, compressors and pumps.
The Korea International Trade Association (KITA) has analyzed the tariff targets, which include refrigerators, freezers, auto parts, elevators, transformers, construction machinery, wires and cables, and forklifts.
KITA particularly pointed out that auto engine parts, which were previously exempt, are now also subject to tariffs, which will inevitably damage the industry.
Source: DKNET News
PSR Analysis: U.S. tariffs of up to 50% on steel and aluminum products could impose broad cost pressures on South Korean cranes, construction machinery, compressors and auto parts. This would reduce the profitability of exports to the U.S., and manufacturers are expected to respond in the short term by passing on price increases and adjusting inventories. In the medium term, they are likely to shift production to the U.S. or within the USMCA region, source parts locally and substitute materials. They are also likely to intensify efforts to apply for tariff exemptions and engage in lobbying activities. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
