Seoul calls for exemption to proposed U.S. port fees for car carriers

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Seoul calls for exemption to proposed U.S. port fees for car carriers

Published: 07 Jul. 2025, 14:47 Updated: 07 Jul. 2025, 17:42

Audio report: written by reporters, read by AI

Hyundai Glovis's Pure Car and Truck Carrier, the Glovis Century [HYUNDAI GLOVIS]

The Korean government has formally requested that the United States exempt Korea from newly proposed port entry fees targeting foreign-built car carriers, pushing for the charge to only apply to China.

Korea’s Ministry of Trade, Industry and Energy and the Ministry of Oceans and Fisheries submitted a five-page opinion letter to the U.S. Trade Representative (USTR) on Friday, according to the USTR office on Monday.

In April, the USTR announced that starting this October, ships operated by Chinese shipping companies or built in China would be subject to new port fees when docking at U.S. ports — a measure aimed at countering China's shipbuilding and shipping industries.

However, for Pure Car and Truck Carriers, the scope of the fee was broadened to include all "foreign-built ships," not just those from China.

This expansion would affect Korean automakers Hyundai Motor and Kia, which export vehicles to the United States, as well as logistics firm Hyundai Glovis, which transports those vehicles.

“Contrary to its intended purpose, the imposition of port entry fees on vehicle carriers will place significant burdens on the relevant industries of both countries and run counter to the reciprocal and mutually beneficial trade relationship between Korea and the United States,” the Korean government stated in the letter to the USTR.

“Such a measure risks imposing undue costs on companies, workers and consumers in both countries. The Korean government, therefore, respectfully requests a careful reassessment of the necessity and appropriateness of this proposed action.”

Though China was not named directly, the statement is interpreted as a call to restrict the fees for Chinese carriers or ships built in China.

Hyundai Motor Group Chairman Euisun Chung speaks at the completion ceremony for the new Hyundai Motor Group Metaplant America plant in Georgia on March 26. [HYUNDAI MOTOR GROUP]

“The automotive sector is already subject to tariffs on vehicles and parts,” the letter continued. “Imposing a port entry fee on vehicle carriers would introduce an additional layer of regulation, effectively creating a dual burden on parties involved in non-U.S. automotive shipments.”

Korean officials also requested that the number of port fee charges be capped at five per year.

“Due to the nature of the automotive shipping industry, which relies on long-term contracts and multiple shipments of large vehicle volumes, it is common for vehicle carriers to enter U.S. ports multiple times per year,” the letter went on. “Without a cap on the number of times fees may be imposed, the industry could face excessive and unpredictable costs.”

Additionally, the letter highlighted Hyundai and Kia’s fulfillment of prior investment commitments made during U.S. President Donald Trump’s first term, as well as their announcement of an additional $21 billion investment plan during his second term.

“By adjusting both the scope and intensity of the measure, the United States can effectively address unfair global trade practices while also minimizing unintended harm to the industrial ecosystems of allied nations, thereby safeguarding the economic cooperation that strengthens the U.S. economy,” the letter concluded.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY WI MOON-HEE [[email protected]]