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The U.S. Bureau of Industry and Security announced on August 19 that it is expanding the Section 232 tariff list to include 407 additional steel and aluminum derivative products subject to 50 percent duties. / Source: BIS

The U.S. Department of Commerce on August 19 (local time) announced it is adding 407 categories of steel and aluminum derivative products to the list of imports subject to a 50 percent tariff under Section 232 of the Trade Expansion Act.

The Bureau of Industry and Security (BIS) said the expanded list includes wind turbines and their components, mobile cranes, bulldozers and other heavy equipment, railway cars, furniture, compressors, pumps, and hundreds of other items.

Section 232 gives the U.S. president authority to impose trade restrictions if imports are deemed a threat to national security. President Donald Trump has invoked the law to levy 50 percent tariffs on steel, aluminum, and their derivatives, 25 percent on automobiles and auto parts, and has signaled high tariffs on pharmaceuticals and semiconductors.

According to the Korea International Trade Association (KITA), the newly added tariff list covers a wide range of South Korea’s exports, such as refrigerators, freezers, auto parts, elevators, transformers, tractor engines and components, cables, forklifts, and construction machinery including hoists and loaders. Some cosmetics packaging containing high levels of aluminum is also expected to be affected.

KITA estimated that Korea’s exports to the U.S. under the newly targeted categories totaled $11.89 billion (16.5 trillion won) last year, accounting for about 5.8 percent of U.S. imports.

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Among the 407 items now subject to 50 percent tariffs under Section 232, the Korea International Trade Association listed South Korea’s top 20 export categories to the U.S., including auto parts, refrigerators, transformers, and construction machinery. / Source: KITA