The U.S. announced preliminary subsidy rates for steel pipes imported from South Korea

While the Department determined in its preliminary review that South Korean producers and exporters had benefited from countervailable subsidies, it partially terminated the administrative review for certain companies.

The investigation covered the period from January 1 to December 31, 2024, and the U.S. Department of Commerce’s preliminary findings took effect as of August 4, 2026. The Department determined a net countervailable subsidy rate of 1.00% for Hyundai Steel Pipe Co., Ltd. (HSP), which was subject to the mandatory investigation. For SeAH Steel Corporation, the other mandatory respondent, a subsidy rate of 0.27% was calculated. The Department of Commerce noted that this rate was at the de minimis level.

For the nine companies that were not subject to individual review but were included in the scope of the investigation, the 1.00% subsidy rate determined for Hyundai Steel Pipe was projected to apply.

Meanwhile, the Ministry canceled the administrative investigation for Hansol Metal Co., Ltd., Il Jin Nts Co., Ltd., Iljin Nts Co., Ltd., Kem Solutions Co., Ltd., and POSCO International Corporation due to the withdrawal of their investigation requests. The investigation was also terminated for certain other companies that had no import records suspended during the investigation period.

This administrative review is based on the U.S. countervailing duty decision imposed in May 2019 on large-diameter welded pipes originating in South Korea. The review process began on June 25, 2025, with Hyundai Steel Pipe and SeAH Steel selected as mandatory respondents. The investigation schedule was extended several times due to the U.S. federal government’s shutdown and congestion in the electronic filing system.

The U.S. Department of Commerce announced that it will share the preliminary calculations with the relevant parties and complete the verification process prior to the final decision. Interested parties will be able to submit written comments and objections, and a public hearing will be held if requested. Following the final decision, U.S. Customs and Border Protection (CBP) will collect duties based on the finalized countervailing duty rates.