US lowered 39% tariff on Korean oil pipes

The United States has more than doubled tariffs for Korean oil pipelines. US trade pressure on Korea is on the rise as US President Donald Trump seeks to strip it of its status as a developing country in the World Trade Organization (WTO).

The US Department of Commerce decided to impose a 38.87 percent tariff on Nexteel Co. products. during the annual revision of anti-dumping duties on Korean oil pipelines, the Korean Ministry of Trade, Industry and Energy said on July 30. more than twice the highest tariff rate set in the previous year's survey. Other steel companies, including Hyundai Steel, were hit by anti-dumping duties of 29.89 percent, nearly double the 16.58 percent imposed on other steel companies last year. The figure for SeAH Steel was 22.70 percent.

The US Department of Commerce has revised some of the tariff rates calculated last month and announced the results.

The United States is a major market for steel pipes such as oil pipelines as they are used to collect crude oil and shale gas. Last year, 35 percent of Korea's steel pipe exports went to the United States. In the same period, the export of Korean oil pipelines to the United States amounted to USD 350 million.

Earlier, on July 15, President Trump signed an executive order according to which the share of American steel that should be used for federal infrastructure projects will increase to 95 percent. Industry analysts say the new regulation's impact on Korean steelmakers is limited as most of their products are used in private projects rather than government projects. However, the Trump administration's higher tariffs on selected goods will inevitably have a negative impact on Korean steel markers.

The US Department of Commerce referred to the special market situation (PMS) clause to justify the adjustment to its tariff. The ICP is a system whereby a department arbitrarily sets tariffs on imported products.

The final tariff rate for the second annual review, announced on July 14, will apply to petroleum products exported to the United States after that date. As such, it will apply to shipments exported prior to the final decision of the third annual review. The US Department of Commerce reviews each item on an annual basis annually and makes preliminary and final decisions.

Increased tariffs have alerted midsize Korean steel producers as pipeline production is focused on midsize Korean steel companies rather than large Korean producers�