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Tariffs

US Court Rules in Favor of Hyundai Steel in Trade Dispute

Strategic Insights

— 1 min read

The US Court of International Trade (CIT) has again ruled in favor of South Korean steel giant Hyundai Steel Co. in a retrial of the US government's imposition of countervailing duties on the company. The original duties were imposed in September 2023, with the US Department of Commerce claiming that South Korea's low industrial electricity rates constitute a government subsidy for Hyundai Steel. However, the CIT ordered a retrial, and in its latest decision, the court found that the US government failed to provide substantial evidence to support its claim.

Key Takeaways:

  • The US Court of International Trade (CIT) has ruled in favor of Hyundai Steel Co. in a retrial of the US government's imposition of countervailing duties on the company.
  • The CIT found that the US Department of Commerce failed to provide substantial evidence to support its claim that Hyundai Steel received a "disproportionately large amount of subsidy".
  • The CIT also found that the US government did not provide a meaningful explanation for why it grouped Korea's steel, semiconductor, and petrochemical industries together.
  • The US commerce department is required to submit a revised determination on the grounds for countervailing duties on Hyundai Steel to the CIT within 90 days of the ruling.
  • This is not the first time the CIT has ruled in favor of a Korean steelmaker, with the court also ruling in favor of POSCO earlier this month.
  • The low industrial electricity rates in South Korea are a key factor in the dispute, with the US Department of Commerce claiming they constitute a government subsidy for Hyundai Steel.

Statistics:

  • 1.08%: the countervailing tariffs imposed by the US Department of Commerce on Hyundai Steel's thick steel plates in September 2023.
  • 90 days: the timeframe in which the US commerce department must submit a revised determination on the grounds for countervailing duties on Hyundai Steel to the CIT.
  • Zero: the number of meaningful explanations provided by the US government for why it grouped Korea's steel, semiconductor, and petrochemical industries together.
  • 2: the number of times the CIT has ruled in favor of a Korean steelmaker in recent court cases.

Sources:

  • Yonhap News Agency, "US court rules in favor of Hyundai Steel in trade dispute" (20 August 2025)
  • Ministry of Trade, Industry and Energy, statement on the CIT ruling.

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