‘Target’ of Protectionism?

The U.S. Department of Commerce made its final determination to pose anti-dumping duties of 64.7% and 38.2% on POSCO and Hyundai Steel on July 20 (local time).
The U.S. Department of Commerce made its final determination to pose anti-dumping duties of 64.7% and 38.2% on POSCO and Hyundai Steel on July 20 (local time).

 

The U.S. hikes up the anti-dumping duties on Korean cold-rolled steel, leading the Korean steel industry to be beleaguered with ‘heavy duties.’

According to the steel industry on July 20, the U.S. Department of Commerce made its final determination to pose anti-dumping duties on Korean steel companies including POSCO and Hyundai Steel Corporation with the rates of 34.33% and 6.32%, respectively.

In addition, the countervailing duties with rates of 58.36% and 3.91% are imposed on POSCO and Hyundai Steel Corp respectively, too. Consequently, a total duty rate of 64.7% is imposed on POSCO and a 38.2% on Hyundai Steel Corp.

Other Korean steel companies, excluding POSCO and Hyundai Steel Corp, are imposed with anti-dumping duty rate of 20.3% and countervailing duty rate of 3.9%. with the US’ final decision, Brazilian cold-rolled steel received final dumping margins of 14.4~35.3%; Indian 7.6%; Russian 1~13.4%; British 0.6~7%.

For countervailing duties, Brazilian cold-rolled steel received 11.1~11.3%, Indian 10%, Russian 0.6~7%. The latest measure from U.S. Department of Commerce shows that the Korean steel products are in the center of the target of the U.S. protectionism. 

On March 2 this year, the U.S. Department of Commerce in its preliminary investigation on Korean cold-rolled steel set a duty rate of 6.89% and 2.17% on POSCO and Hyundai Steel Corp. respectively. However in the final determination, the U.S. Commerce levied massive duties compared to the preliminary one it initially set. In particular, the anti-dumping duties imposed on Hyundai Steel Corp and countervailing duties imposed for the POSCO are somewhat hefty.

An industry official highlighted, “Now there is a higher possibility that hot-rolled and thick plate products, which have been exported in large scale, could be also levied massive anti-dumping duties,” adding, “(with the recent decision,) s export routes to the U.S. for POSCO and Hyundai Steel are practically blocked.”

In the meantime, according to Korea International Trade Association, the U.S. International Trade Commission made its final determination on July 21 to impose an anti-dumping duty rate of up to 48% on Korean coated-steel sheets.

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