SEOUL, South Korea – The South Korean government has formally requested the United States to refrain from imposing tariffs on South Korean copper products, expressing concerns that such measures could negatively impact the investment activities of South Korean companies operating within the U.S. The Ministry of Trade, Industry and Energy (MOTIE) submitted its position to the U.S. Department of Commerce on April 1st regarding the ongoing investigation into copper imports under Section 232 of the Trade Expansion Act of 1962, according to a notice published in the U.S. Federal Register on April 13th (local time).
In its submitted opinion, MOTIE asserted that South Korean copper products do not pose a threat to U.S. national security and, conversely, contribute to the stability of the American economy and its supply chain. The ministry further argued that imposing tariffs on copper imports could inflate domestic copper prices in the U.S., ultimately weakening the competitiveness of American manufacturers and thereby harming U.S. security and economic interests.
Section 232 of the Trade Expansion Act grants the U.S. President the authority to impose tariffs or other appropriate measures to restrict imports if it is determined that such imports threaten national security. 1 The Department of Commerce initiated the investigation into copper imports on March 10th at the direction of the administration led by the individual who previously held the presidential office. Given the protectionist trade stance of that administration, there is a potential for import restrictions, including tariffs, to be implemented.
MOTIE highlighted that South Korean copper products account for a mere 3% of total U.S. copper imports and are primarily utilized in sectors such as construction, water supply, and power infrastructure, which have limited direct links to national defense. The ministry argued that the impact of South Korean copper on U.S. security is less significant compared to that of other exporting nations.
Furthermore, MOTIE emphasized that South Korean companies with substantial investments in the U.S., which contribute significantly to the American economy and job creation, utilize South Korean-made copper foil. Specifically, South Korean battery manufacturers, which are the primary suppliers of copper foil, have invested approximately $46.5 billion in the U.S., creating over 10,000 jobs.
"Uncertainty surrounding the stable supply of key materials, including copper foil, could jeopardize not only the feasibility of long-term investments but also the stability of quality jobs," MOTIE stated in its submission.
The ministry concluded by saying, "Considering South Korea's positive contributions to the U.S. economy, the Korean government requests a reasonable investigation from the U.S. Department of Commerce and hopes to seek mutually beneficial outcomes with the U.S. government regarding bilateral copper trade between the two nations."
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