United States imposes more Anti-Dumping Tariffs on Korean Steel
John Kim, Aug. 8, 2016, 9:29 a.m.
Korea's W3 trillion steel exports to the U.S. have been dealt another blow as Washington slapped more anti-dumping tariffs on hot-rolled coils (US$1=W1,110). The U.S. Commerce Department on Friday decided to levy anti-dumping and countervailing tariffs on Korean coils, with POSCO paying up to 57 percent tariff and Hyundai Steel 13.3 percent.
Anti-dumping tariffs are levied when the price of a product sold at home is higher than that of the same product sold overseas, while countervailing tariffs are levied when exporters receive unfair subsidies from their own governments. A steel industry source said, "The decision needs to be finalized by the U.S. International Trade Commission next month, but there is little chance of any change."
Last month the U.S. also slapped 64.7 percent tariffs on Korean cold-rolled sheets and 48 percent on stainless steel. Korean oil country tubular goods were slapped with 12.8 percent tariffs, a measure being reviewed by the World Trade Organization. Korea's steel exports to the U.S. totaled US$2.46 billion last year.
Korean steelmakers did not protest when cold-rolled steel products were slapped with tariffs because they do not export huge volumes. But hot-rolled coils are different because the country exports $550 million worth to the U.S.
"If prices go up due to the new tariffs, it will be virtually impossible to sell them in the U.S.," an industry insider said. Jung Eun-mi at the Korea Institute for Industrial Economics and Trade said, "The U.S. is bolstering tariffs amid a global steel glut, which is causing a lot of problems for Korean steelmakers."