On May 1, Beijing time, the Yonhap News Agency reported that the South Korean government and the steel industry sector announced on April 1 that the US White House’s exemption from high tariffs on Korean steel on April 30 local time indicated that the United States does not adopt “232 measures” for imported steel and aluminum products. Certainty has been eliminated.
South Korea’s Minister of Trade Negotiations, Kim Tae-jung, announced at the press conference on April 26th that the Korea-US Free Trade Agreement (FTA) revision and the steel tariff negotiation results indicated that the US decided to exempt South Korea from a 25% tariff. However, the United States did not specify the above content in the announcement, leading to uncertainty in the import of US steel tariffs into the United States.
The White House stated that as South Korea has agreed to reduce excess steel production capacity and use quotas to limit US steel exports, South Korea’s steel products exported to the United States will continue to be exempted from tariffs.
South Korea received a steel export quota of approximately 2.63 million tons, equivalent to 70% of South Korea’s annual average steel export volume (3.83 million tons) during the 2015-2017 period. This part of steel can be exempt from new US tariffs. However, since the number of exports was included in quotas from January 1, the enterprises that have run out of quotas in the first half of the year will be restricted from exporting in the second half of the year. According to data released by the Ministry of Industry, Trade and Resources, the amount of steel exported to the United States by the Korean steel industry has reached 34.6% of the total for the whole year, based on the volume of customs clearance from January 1 to April 20.
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Post time: May-02-2018