The South Korean government has formally requested the United States to limit the imposition of entry fees on car carriers to those built in China, excluding those from Korea. This request was made in a formal opinion letter submitted to the U.S. Trade Representative (USTR) by the Ministry of Trade, Industry, and Energy and the Ministry of Oceans and Fisheries on April 4. The letter was in response to the USTR’s policy introduced on April 17 aimed at countering China’s maritime industry dominance and rebuilding the U.S. shipbuilding industry.
The policy, set to take effect on October 14, seeks to levy fees on vessels entering U.S. ports that are operated by Chinese maritime companies or constructed in China. However, the inclusion of all foreign-built car carriers within the scope raised concerns about the potential burden on South Korea’s shipping and shipbuilding sectors.
In its letter, the South Korean government expressed concern that the entry fees for car carriers could contravene the initial purpose of the policy by imposing significant burdens on related industries between Korea and the U.S., thereby potentially hindering mutually beneficial trade relations.
While the letter did not explicitly mention China, the South Korean government asked for a clear and targeted definition of the countries affected by the fee, suggesting that Korea should be excluded from the policy’s scope. Additionally, the government requested a cap on the number of times the fee could be imposed annually, noting that car carriers frequently enter U.S. ports, which could result in repetitive financial burdens.
The government also highlighted the substantial investments made by Korean automakers like Hyundai and Kia in U.S. manufacturing facilities, including a newly announced additional investment of $21 billion. It warned that imposing entry fees on top of existing tariffs on cars and parts could lead to a double burden for companies. The South Korean government suggested that by adjusting the policy’s scope and intensity, harmful impacts on allied industries could be minimized while addressing unfair trade practices.