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KITA seeks exemption from potential U.S. tariffs on copper products

Published: 08 Apr. 2025, 15:35 Updated: 08 Apr. 2025, 16:59

An employee works at LS MnM's Onsan copper smelter in Ulsan in August 2023 [YONHAP]

The Korea International Trade Association (KITA) has formally requested that the United States exempt Korean copper products from potential import tariffs imposed as part of a national security investigation, the group announced Tuesday.

The submission, filed with the U.S. Department of Commerce on April 1, comes in response to a public comment period for an investigation launched on March 10 under Section 232 of the Trade Expansion Act — the same legal framework previously used to impose tariffs on steel, aluminum, automobiles and auto parts.

In its filing, KITA argued that Korean copper poses no threat to U.S. national security, noting that it accounted for just 3.5 percent of total U.S. copper imports last year. The association also cited substantial Korean investment in U.S. manufacturing, which it said has contributed to bolstering U.S. supply chains and industrial capacity.

LS Cable & System, for instance, is investing around $800 million to build a submarine power cable facility in Virginia, with construction beginning this month. Poongsan, a Korean manufacturer of industrial copper products, has committed approximately $500 million to its plant in Iowa, which produces about 54,000 tons of copper-rolled products annually.

KITA warned that imposing tariffs on copper derivatives — such as wire, sheets, foils and extrusions — could backfire by increasing costs for downstream industries including battery manufacturing, IT components, transformers and construction materials. Tariffs on cables and wiring, the group said, could also hinder the expansion of power infrastructure needed for advanced technologies like AI.

United States President Donald Trump [JOONGANG ILBO]

Still, KITA acknowledged that, based on past precedent, it may be difficult for Korean copper products to receive a full exemption. As an alternative, the group asked the U.S. government to consider narrowing the scope of affected products or phasing in the tariff measures to give companies time to adjust their supply chains.

Korean companies are already preparing for possible duties. An LS Cable official said the company plans to further strengthen its local production base in the United States and respond flexibly to market changes, including by adjusting export prices from its Vietnamese subsidiary.

“Tariffs have already been imposed on steel, aluminum, cars and auto parts, and investigations into semiconductors and pharmaceuticals may begin soon,” said Cho Seong-dae, head of KITA’s trade policy research office. “We will continue to work closely with the industry and focus on providing data to support the government’s negotiations and minimize the impact of trade restrictions.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY NA SANG-HYEON [[email protected]]