South Korea Urges U.S. to Exempt Car Carrier Ships from Tariffs

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  • South Korea requests that the U.S. exempt car carrier vessels from Section 232 steel and aluminum tariffs.
  • Tariffs threaten competitiveness of Korea’s auto exports by raising shipping costs.
  • Seoul emphasizes global trade importance of vessels in talks with U.S. officials.

South Korea’s Ministry of Trade, Industry and Energy has formally requested that the United States exempt car carrier vessels from the Section 232 tariffs on steel and aluminum, reports Business Korea.

These tariffs, originally imposed in response to national security concerns, apply a 25% duty on imported steel and a 10% duty on aluminum. While the tariffs are aimed at protecting U.S. industries, they have inadvertently impacted the global shipping operations crucial to South Korea’s automotive export sector.

Car carrier ships, which are essential for transporting Korean-made vehicles to international markets, are constructed and maintained using steel and aluminum. The additional costs incurred from these tariffs are driving up expenses for ship operators and, in turn, making Korean automotive exports more expensive and less competitive.

Diplomatic Engagement for Exemption

In response, South Korea has initiated discussions with U.S. trade officials to advocate for an exemption. The government emphasized that car carriers serve a global function beyond national boundaries and should not be restricted by tariffs designed for domestic protectionism. Officials hope to demonstrate that lifting these tariffs for vessel materials will not compromise U.S. security interests but will instead support the broader stability of global logistics.

This move comes as part of ongoing bilateral trade negotiations, during which South Korea has previously sought and received limited exemptions for specific steel and aluminum products. The government is now seeking a broader application of such exemptions to include vessel components.

Global Shipping Impact and Next Steps

Industry experts warn that without relief, the shipping sector could face prolonged financial strain, reduced operational efficiency, and increased delivery times. Carriers may be forced to pass on higher maintenance and construction costs to exporters, impacting the global supply chain.

As the dialogue continues, South Korea is preparing detailed economic assessments and case studies to strengthen its case. The outcome of these talks could set an important precedent for how infrastructure-related tariffs are managed in international trade, particularly for sectors with cross-border significance like maritime transport.

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Source:Business Kores