The U.S. government has imposed a 0% tariff on HD Hyundai Electric and Iljin Electric, which were directly investigated for anti-dumping duties on large transformers from South Korea. In contrast, Hyosung Heavy Industries and LS Electric, which were not part of the investigation, face a 4.32% tariff, prompting both companies to take legal action.
According to industry sources, Hyosung Heavy Industries and LS Electric recently filed lawsuits against the U.S. government in the Court of International Trade (CIT). They are contesting the U.S. Department of Commerce's findings from the administrative review of anti-dumping duties on large power transformers from South Korea.
During the review process, the Department of Commerce selects certain companies as mandatory respondents, requiring them to submit data on export prices and costs to determine whether dumping occurred. Tariff rates for non-responding companies are then calculated based on the results of these investigations.
In this review, both HD Hyundai Electric and Iljin Electric were designated as mandatory respondents and received a 0% dumping margin. Conversely, Hyosung Heavy Industries and LS Electric, which were not directly investigated, were assigned a 4.32% tariff, leading to their legal response.
Hyosung Heavy Industries and LS Electric view this lawsuit as a standard remedy process. They argue that it is unjust for non-investigated companies to be subjected to a past rate of 4.32% when the investigated companies received a 0% tariff. They seek an objective review from the Court of International Trade.
However, the impact of this lawsuit on Hyosung Heavy Industries and LS Electric's operations in the U.S. is expected to be limited. The tariffs in question apply to quantities already exported during the investigation period and do not directly affect current contracts or new business ventures.
An industry insider stated, "This lawsuit concerns whether additional tariffs will be imposed on the quantities exported at that time. The ongoing litigation will not significantly affect current contracts or operations in the U.S., and we hope it does not set an unfair precedent."
The case involves large power transformers imported from South Korea between August 1, 2023, and July 31, 2024. The Department of Commerce determined last month that these products were sold in the U.S. at prices lower than their normal value. Hyosung Heavy Industries and LS Electric submitted separate summonses to the Court of International Trade.
* This article has been translated by AI.
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