US unfairly accused POSCO of subsidizing hot rolled steel sheets

The US imposed a high tariff on Dong-A Steel Co's Korean steel pipes, accusing it of subsidizing POSCO steel sheets used to make pipes. The United States re-imposed a high tariff on Korean steel products, mistakenly, according to POSCO, after finding problems in hot rolled steel sheets. But, last month, a court ruled that the Commerce Department imposed a tariff rate for POSCO products without a reasonable basis.

The US Department of Commerce recently set a preliminary tariff of 30.61 percent for carbon steel pipe by Dong-A Steel Co., a midsize steelmaker, after its annual report.

The preliminary tariff was 28.27 percentage points higher than the rate imposed on them in the 2016 rule. Tariffs on products from other Korean steel companies, including Hyundai Steel, also rose from 3.24 percent to 18.86 percent. These carbon steel pipes are used for offshore structures. Korea exported US $ 43.77 million of these products to the United States last year.

The US Department of Commerce noted that the pipes are carbon-based, made from POSCO hot-rolled steel sheets, which it claims were subsidized by the Korean government. The department set a tariff of nearly 60% on POSCO's hot rolled steel plates, saying POSCO was not actively cooperating with its investigation.

The US Department of Commerce is imposing high tariffs on Korean steel products that have been manufactured using POSCO hot rolled steel sheets. This was revealed by the same department when it introduced 18.77% and 47.62% tariffs this year on Korean steel pipes for oil pipelines and oil wells, respectively. As the department views the use of POSCO hot rolled steel plates as unfairly sold, it is detrimental to other Korean steel products made from them.

Korean companies say the department's logic doesn't stand up to scrutiny. They argue that the high tariff imposed on POSCO hot rolled steel plates should not be applied to Korean steel pipes because the department imposed a high tariff on POSCO steel plates because POSCO allegedly did not cooperate in the department's investigation. The high tariff for POSOCO, they said, was intended to punish POSCO.

Korean companies have no choice but to go to the US International Trade Court (CIT). Last month, a court ruled that the Commerce Department imposed a tariff rate for POSCO products without a reasonable basis. The court's decision forced the department to set the tariff rate again. Therefore, some experts say there is a possibility that if the tariff on POSCO products is cut, tariffs on other products, including steel pipes, may also be