Hyundai Motor Group to USTR: 'US Section 301 tariffs should not be redundantly applied with Section 232'

Hyundai Motor Group to USTR: 'US Section 301 tariffs should not be redundantly applied with Section 232'

Hyundai Motor Group persuaded the U.S. government that the review of 'Super Section 301' tariffs should not allow redundant application with the existing Section 232 tariff measures.

According to the U.S. Trade Representative (USTR) on the 20th, Hyundai Motor Group, in an opinion submitted under the name of Drew Ferguson, Vice President for Government External Relations, stated, "For industries such as automobiles and steel, where imports are already regulated under Section 232 of the Trade Expansion Act, additional measures should not overlap with existing remedies."

Section 232 of the Trade Expansion Act is a law that allows the President to restrict imports if it is determined that imported products threaten U.S. national security. South Korean steel products are subject to a 50% tariff, and automobiles and auto parts are subject to a 15% tariff.

The meaning is that applying Section 301 of the Trade Act, which imposes tariffs on specific countries, again when such import restriction measures are already in place, is an excessive measure.

The USTR can investigate unfair trade practices under Section 301 of the Trade Act. It can also impose tariffs if it determines that a trading partner has unfair trade practices. Like Section 232 of the Trade Expansion Act, there is no limit to the tariff rate.

Hyundai Motor Group pointed out, "Imposing additional Section 301 tariffs on items already subject to Section 232 measures will only increase production costs in the U.S." and "It will not at all increase local production capacity, employment, or supply chain resilience in the U.S."