New U.S. Fee Imposes $150 per Vehicle from Oct. 14

The Korean government has officially requested the United States to exempt car carrier ships from the newly announced entry fee, which the U.S. plans to impose on foreign-built car carriers starting Oct. 14.

According to the Office of the United States Trade Representative (USTR) on July 7 (local time), the Ministry of Trade, Industry and Energy and the Ministry of Oceans and Fisheries submitted an official statement to the USTR on July 4. Previously, on April 17, the USTR announced a series of policies aimed at preventing China’s dominance in the shipbuilding and shipping industries and rebuilding the U.S. shipbuilding industry. This included a plan to impose a fee of $150 per vehicle on all foreign-built car carriers, including those from China, starting Oct. 14.

In the statement, the government pointed out, “The imposition of entry fees on car carrier ships will, contrary to the intended purpose, place a significant burden on related industries in both countries and go against the mutually beneficial trade relationship between Korea and the United States.”

The government then reminded the USTR of the stated objectives when implementing policies such as entry fees, stating, “The Korean government respectfully requests that the imposition of entry fees for car carrier ships be clearly defined and limited to the originally targeted countries, consistent with the original purpose of the measure.” While the government did not directly mention China, this is interpreted as a request to limit the car carrier ship entry fee to Chinese companies or Chinese-built carriers.

The government also requested that a cap be set on the number of times entry fees can be imposed, noting that car carrier ships often enter U.S. ports multiple times a year.

The government emphasized that Korean automakers, including Hyundai Motor and Kia, have faithfully implemented the investment plans promised during the Trump administration’s first term and announced additional investment plans of 21 billion dollars during the second term.

The government added that with the U.S. already imposing tariffs on automobiles and their parts, the entry fee for car carrier ships would impose a double burden on companies exporting automobiles to the United States. It urged that if the U.S. adjusts the scope and intensity of this measure as requested by Korea, it could effectively address unfair global trade practices while minimizing unintended damage to the industrial ecosystems of allied countries like Korea, which contribute to strengthening the U.S. economy through economic cooperation.

Source: Businesskorea