The Korean press has reported that the U.S. Commerce Department’s anti-dumping duty on automotive steel imported by Hyundai Steel is expected to raise the prices of Hyundai and Kia cars if it is not rescinded.
Hyundai Steel is part of the Hyundai Group to which both Hyundai Motors and Kia Motors belong. Hyundai Motors manufactures cars in Montgomery, Ala., and Kia Motors in West Point, Ga.
According to the Korea Herald, Korean industry sources say that the prices of these cars will be increased, especially if the anti-dumping duties are held for a lengthy period on the coated steel, which makes up some 80 percent of production for vehicles.
Korea is not alone in facing the anti-dumping and countervailing duty penalties that have been placed on the imported steel for allegedly artificially lowering the cost of the steel and benefiting from government subsidies. Brazil, Japan, Korea, the Netherlands, Turkey and/or the United Kingdom also are being investigating for either injuring or threatening to injure domestic industry.
Industry sources say that U.S. steel manufacturers, which were hurt severely last year from the cheaper steel imports, have been raising their prices while the duties have protected their domestic markets. The issue is hot politically as the presidential campaigns have made trade and the retention of U.S. jobs from foreign competition major issues.
The US. is scheduled to make its final injury determinations in the investigations of hot-rolled steel from these countries by Sept.19. If the Commerce Department’s International Trade Administration’s investigations are negative the duties will be dropped.