Hyundai Motor Group said the U.S. government's review under the "super Section 301" tariff should not allow overlapping application with the existing Section 232 tariff measures.
According to the Office of the United States Trade Representative (USTR) on the 20th, Hyundai Motor Group said in a comment letter signed by Drew Ferguson, vice president for external affairs of the government relations office, "In sectors such as automobiles and steel that are already regulated under Section 232 of the Trade Expansion Act, any additional measures should not duplicate existing remedies."
Section 232 of the Trade Expansion Act allows the president to restrict imports if imported products are deemed to threaten U.S. national security. Korea's steel products face a 50% tariff, and automobiles and auto parts face a 15% tariff. The point is that applying Section 301 of the Trade Act, which imposes tariffs targeting specific countries, would be excessive when such import restrictions are already in place.
Under Section 301 of the Trade Act, the USTR can investigate unfair trade. If it determines the other country engages in unfair trade practices, it can impose tariffs, among other steps. Alongside Section 232 of the Trade Expansion Act, there is no cap on tariff rates.
Hyundai Motor Group said, "Adding Section 301 tariffs on top of items already subject to Section 232 would only raise production costs in the United States," adding, "It would do nothing to improve U.S. local production capacity, employment, or supply chain resilience."