Washington: The U.S. Commerce Department has initiated a process to broaden the range of imported automobile parts subjected to 25 percent tariffs, potentially impacting South Korea's auto part industry. This development was revealed in a department release on Thursday.
According to Yonhap News Agency, the department's International Trade Administration (ITA) has laid out the procedure allowing U.S. domestic producers to request the inclusion of additional auto parts in the tariff scope, effective since May 3. This initiative is aimed at enhancing the application of tariffs on automobile parts.
The ITA will facilitate this process by opening two-week submission windows four times annually-in January, April, July, and October-with the inaugural window commencing on July 1. Requests from U.S. producers will be reviewed on a rolling basis during these submission windows.
After each submission period, a non-confidential version of every valid request will be published, allowing a 14-day public comment period, as per ITA guidelines. The administration plans to reach a determination within 60 days of receiving a request.
Currently, the tariffs affect items such as engines, transmissions, powertrain parts, and electrical components. The ITA emphasized that this initiative aims to support the objectives of Section 232 tariffs by safeguarding critical U.S. national security interests related to automobiles and automobile parts.
The tariffs were imposed under Section 232 of the Trade Expansion Act of 1962, which grants the president authority to adjust imports when they are deemed a threat to national security. This expansion impacts not only the automobile sector but also the South Korean industry.
In a related move earlier this month, the Trump administration announced the inclusion of products like refrigerators, washing machines, and dryers in the list of derivatives subjected to a 50 percent steel tariff. The tariffs will be calculated based on the steel content value in each of these products.