Cheong Wa Dae said the U.S. administration of Donald Trump introduced a new tariff system on home appliances with high steel, aluminum, and copper content, noting, "The government is closely monitoring related developments, will promptly guide the industry, and will assess the impact." The move follows President Trump's overhaul of the tariff system under Section 232 of the Trade Expansion Act.
Cheong Wa Dae announced the position in a media notice on the 3rd. A day earlier (local time), President Trump signed a "steel tariff adjustment proclamation" to uniformly impose a 25% tariff on derivative products with high steel, aluminum, and copper content. Previously, up to a 50% tariff was applied depending on the share of metal content included in the product, but going forward it will be simplified by uniformly applying 25% to the price of finished goods.
According to the proclamation, ▲ finished goods in which metal content exceeds 15% of product weight are subject to a 25% tariff, and ▲ if the content is 15% or less, the item tariff is exempted. This could work against Korean corporations that export home appliances such as washing machines, refrigerators, and gas ranges. Even if produced outside the United States, products that use U.S.-made steel, aluminum, or copper are subject to only a 10% tariff. This reflects an intent to reorganize manufacturing supply chains around the United States.