The United States has levied substantial anti-dumping and countervailing duties on aluminum wire and cable (AWC) manufactured in South Korea, citing the use of Chinese raw materials and alleging circumvention of existing trade restrictions.

The U.S. Department of Commerce announced the decision, imposing duties of 52.79% for anti-dumping and 33.44% for countervailing, effective on products exported after October 2023, when the investigation commenced. The move stems from concerns that Chinese materials are being funneled into the U.S. market via South Korean manufacturers.

"The Department of Commerce has determined that Chinese raw materials are being used by South Korean companies to circumvent existing tariffs on Chinese-made AWC," stated a U.S. official.

South Korean companies are now facing the challenge of proving their supply chains are free of Chinese materials. While Taihan Cable & Solution has been exempted, Busan Cable Engineering, a company with 100% Chinese ownership, is subject to the new tariffs. Other South Korean firms may avoid the duties by demonstrating their independence from Chinese inputs.

The South Korean Ministry of Trade, Industry and Energy has been actively involved in the investigation, working to represent the interests of domestic companies. "We have been engaging with U.S. authorities to clarify the situation and ensure fair treatment for Korean businesses," said a ministry spokesperson.

This decision highlights the ongoing tensions surrounding global trade and the efforts by the U.S. to enforce its trade regulations.