Sinoloben Europa Trading GmbH
瀚誉欧洲进出口贸易有限公司
Scope of Expansion
The U.S. added 407 steel and aluminum derivative products to its tariff list, covering:
Industrial equipment: Transformers, turbines, engines, construction machinery (e.g., forklifts, bulldozers), and steel pipes
Consumer goods: Kitchen knives, furniture with steel frames, aluminum cosmetic containers, and household appliances
Effective date: August 18, 2025 (00:01 EST), applying to imports entering U.S. ports or withdrawn from bonded warehouses
Tariff Calculation
50% tariff imposed only on the steel/aluminum content valueof products.
Non-steel/aluminum components taxed at existing reciprocal tariff rates (e.g., 15% for South Korea)
Example: A car part worth ₩10 million (≈$7.6K) with 40% steel/aluminum content incurs:
Steel/aluminum tax: ₩2 million (₩10M × 40% × 50%).
Non-steel tax: ₩0.9 million (₩6M × 15%).
Total tax: ₩2.9 million (nearly double the previous tax)
Impact on South Korea
$11.89 billion in exports affected (2024 data), including:
Refrigerators/freezers ($1.6B, 23.1% U.S. market share).
Cosmetics ($1.26B, 24.2% share), especially aluminum containers
Small businesses hit hardest: Over 90% of impacted manufacturers are SMEs, with tariffs exceeding profit margins
Stock declines: Korean machinery stocks (e.g., LS Electric, HD Hyundai Electric) fell 3–7% post-announcement
Background and U.S. Rationale
Policy basis: Section 232 of the Trade Expansion Act(national security grounds)
Phased escalation:
March 2025: Initial 25% tariff on steel/aluminum derivatives.
June 2025: Rate raised to 50% and expanded to include appliances
U.S. industry pressure: Domestic steel shortages (e.g., 5M-ton slab gap) drive protectionism
Global Reactions
China’s criticism: Condemned tariffs as "unilateral protectionism," violating WTO rules
Korean countermeasures: Government pledges legal aid and market diversification support for SMEs
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