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US Steel Tariff Shift Eases Burden for South Korean Exporters

The United States has adjusted its metal tariffs, shifting the calculation basis to the full customs value of products, which South Korea's trade minister says will reduce administrative burdens for companies. While the change led to a 17% reduction in the number of affected items, the government remains vigilant as the US may later expand the list. Concurrently, South Korea and the US held their first official talks to implement a Technology Prosperity Deal signed last year. The working group aims to strengthen cooperation in AI, biotech, space, and digital infrastructure.

Key Points: US Adjusts Steel Tariffs, Easing Burden on South Korean Firms

  • US simplified tariff calculation to full customs value
  • 17% fewer products now subject to tariffs
  • South Korea to monitor for future US list expansions
  • First tech cooperation working group talks held
2 min read

US adjustment of steel tariffs to lower administrative burden on firms

South Korea says revised US metal tariffs will lower administrative burdens for companies, though impact varies by item. Minister vows support.

"the overall administrative burden on domestic companies and uncertainties related to customs clearance are expected to decrease - Trade Minister Yeo Han-koo"

Seoul, April 9

The United States' recent adjustment of its metal tariffs will likely reduce the overall administrative burden on South Korean companies, though the impact may differ by item, Seoul's trade minister said on Thursday, vowing efforts to help companies minimise their burden.

Trade Minister Yeo Han-koo made the assessment during a meeting with officials from industries affected by U.S. tariffs on steel, aluminum and copper imports, as well as their derivatives, according to the Ministry of Trade, Industry and Resources, reports Yonhap news agency.

The administration of U.S. President Donald Trump simplified its tariffs on such products earlier this week so that they take effect based on their "full customs value." Previously, the U.S. imposed metal duties based on the value of the metal content in each of the products -- a more complicated calculation process.

With the simplification of U.S. tariffs, the overall administrative burden on domestic companies and uncertainties related to customs clearance are expected to decrease, Yeo said.

Under the new U.S. system, the number of products subject to the metal tariffs went down by 17 percent, with cosmetics, chemical, furniture and other products excluded from the list, according to the ministry.

Yeo, however, said the government will remain vigilant as the U.S. may include additional items in the list of derivatives subject to tariffs after a planned review of the system, while continuing efforts to devise necessary support measures for companies.

Meanwhile, South Korea and the US held their first follow-up talks on Thursday to flesh out the details of an agreement signed last year on technology cooperation, the science ministry said.

The meeting, held virtually, marked the launch of a working group on the Technology Prosperity Deal, signed on the sidelines of a South Korea-U.S. summit held in October in Gyeongju, a city located some 275 kilometers southeast of Seoul, where the countries' leaders attended the Asia-Pacific Economic Cooperation (APEC) summit.

"During the first official meeting, the two countries discussed the structure and operation of the working group, as well as final goals and areas of cooperation through related activities," the Ministry of Science and ICT said in a release.

The two countries will seek to strengthen ties in various cutting-edge sectors, including artificial intelligence (AI), digital infrastructure, biotechnology and space, it added.

- IANS

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Reader Comments

R
Rohit P
Reducing administrative burden is always welcome news. Our own GST system, while a big step, still has complexities that burden small businesses. Maybe our policymakers can take a leaf out of this book for simplifying our own export-import procedures. Less red tape = faster growth.
A
Aditya G
The focus on AI, biotech, and space in the tech cooperation deal is key. India is also pushing hard in these areas. We need more such strategic partnerships that go beyond traditional trade and build knowledge economies. Hope our government is watching and engaging similarly.
S
Sarah B
As someone working in international trade, I appreciate this move. The previous system based on metal content value was a nightmare for compliance. A simpler, value-based tariff is more transparent. Hope this sets a precedent for other countries to follow suit.
K
Karthik V
Good step, but the minister is right to stay vigilant. The US can always add items back later. Our own experience with trade negotiations shows that initial relief can be followed by new barriers. Constant diplomacy and a strong domestic industry are the only real safeguards.
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Nikhil C
While simplification is good, let's not forget the core issue: these tariffs are protectionist tools. They distort free trade. As a developing economy, India should champion fairer global trade rules in forums like the WTO, not just seek bilateral concessions.

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