Washington: The U.S. Commerce Department has initiated a process to include more imported automobile parts under the 25 percent tariff category, a move that could impact South Korea's auto part industry.
According to Yonhap News Agency, the department's International Trade Administration (ITA) has detailed the procedure for U.S. domestic producers to request the inclusion of additional auto parts in the tariff list that came into effect on May 3. This initiative aims to bolster the objectives of Section 232 tariffs, which are designed to protect U.S. national security interests concerning automobiles and auto parts.
The tariffs on automobiles and certain parts were imposed under Section 232 of the Trade Expansion Act of 1962. This statute grants the president the authority to adjust imports into the U.S. if they are deemed a threat to national security. The ITA has established two-week submission windows for requests from U.S. auto part producers, occurring four times a year in January, April, July, and October. The first submission window is set to open on July 1, and requests will be reviewed on a rolling basis during these periods.
After the two-week submission window closes, a non-confidential version of each valid request will be made available for public comment for 14 days. The ITA plans to reach a determination within 60 days of receiving the request. Currently, the tariffs apply to auto parts such as engines, transmissions, powertrain parts, and electrical components.