The United States is simplifying its Section 232 tariffs on derivatives of aluminium, steel, and copper, easing compliance burdens for exporters, including those from Korea.

According to the Ministry of Trade, Industry and Energy, the revised regime will take effect from April 6 (Eastern Standard Time). The overhaul replaces the earlier system, with duties calculated based on metal content, with a flat-rate structure linked to customs value. Under the new rules, imports will face tariffs of 50 per cent, 25 per cent or 15 per cent.

Previously, firms determined tariffs based on the proportion of metal content in individual items. The shift to a uniform valuation model is expected to streamline procedures.

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The scope of tariffed goods has also narrowed. Cosmetics and food products have been excluded from the derivatives list, reducing coverage by about 17 per cent (USD 2.3 billion). These items will now fall under a global base tariff of 10 per cent. Additionally, products containing less than 15 per cent steel, aluminium or copper by weight will be exempt from Section 232 duties.

Exporters leveraging the Korea-US Free Trade Agreement gain an advantage, as base tariffs on covered derivatives remain at 0 per cent.

However, impacts vary across sectors. Tariffs on ultra-high-voltage transformers and select machinery will drop from 25 per cent to 15 per cent until December 2027, while auto parts are expected to remain unaffected.

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“Some items are disadvantaged while others benefit, so it is difficult to judge the impact uniformly,” said Kwon Hye-jin, adding that "Beyond tariffs, there are positive effects such as easing administrative burdens and reducing uncertainty."