US sets process to expand auto parts subject to 25% tariffs
The US Commerce Department has established a process to include more imported automobile parts in the list of those subject to 25 percent tariffs, its release showed Thursday, a move that could affect South Korea's auto part industry.
This week, the department's International Trade Administration outlined the process by which US domestic producers may request additional auto parts to be included in the scope of the new tariffs on automobile parts that took effect on May 3.
To receive requests from US producers of auto parts, ITA is establishing two-week submission windows held four times a year -- each January, April, July, and October, with the first window opening on July 1. It plans to review received requests on a rolling basis during the two-week submission window.
Following the two-week submission window, a non-confidential version of each valid request will be published and open for public comment for 14 days, according to ITA. ITA plans to make a determination within 60 days of receiving the request.
The items subject to the current tariffs on auto parts include engines, transmissions, powertrain parts and electrical components.
"This program will strengthen the objectives of Section 232 tariffs to protect critical US national security interests related to automobiles and automobile parts," ITA said in a press release.
To impose the tariffs on automobiles and certain parts, Trump invoked Section 232 of the Trade Expansion Act of 1962 -- a statute that provides the president with authority to adjust imports into the United States when he determines they threaten to impair national security.
The Trump administration has expanded the scope of its Section 232 tariffs in a way that affects the South Korean industry.
Earlier this month, it announced a decision to add refrigerators, washing machines, dryers and other items to the list of derivatives subject to a 50 percent steel tariff, noting that the tariff will be assessed on those products based on the value of the steel content in each. (Yonhap)
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