[Exclusive] Wia Machine Tools and Hanyang Robotics Request 'Section 301 Tariff Exemption' from U.S. USTR

Out of 86 Section 301 Investigation Submissions,
Only Two Korean Companies by April 13, Two Days Before Deadline
Korean Companies Express "Concerns Over Higher U.S. Investment Costs"
"Korean Firms Should Actively Submit Opinions Before and After

With just two days left before the deadline for submitting comments on the United States Trade Act Section 301 investigation, it has been found that global companies are requesting tariff exemptions and urging cautious application of the measures. In particular, domestic companies with U.S. entities such as WIA and Hanyang Robotics (Nau Robotics) submitted opinions highlighting concerns about reduced investment in U.S. companies and emphasizing the importance of the cooperative relationship between Korea and the United States.

According to an analysis by The Asia Business Daily on April 13 of the list of submissions for the Section 301 investigation on the website of the United States Trade Representative (USTR), among the 86 comments submitted as of 4 p.m., only two were identified as submitted by Korean companies. Both companies have U.S. entities, and the comments were submitted using their U.S. corporate names.

List of submissions for Section 301 investigation comments on the website of the United States Trade Representative (USTR). Screenshot from the USTR website.

The USTR announced the initiation of the Section 301 investigation on March 11. After accepting submissions until midnight on April 15, it plans to hold public hearings from May 5 to 8. The USTR has stated that public comments may be submitted in cases such as when structural overcapacity or overproduction is created, when measures are unreasonable or discriminatory, or when U.S. commerce is burdened or restricted.

Korean Companies Highlight Restrictions on U.S. Investment and Cooperative Relationships

WIA Machine Tools America, the U.S. subsidiary of WIA Machine Tools, submitted its comments to the USTR on April 9. The company emphasized that Section 301 tariffs would directly lead to increased capital investment costs for U.S. manufacturers. It added that this would not only cause delays in purchases and reduce investment, but also delay the modernization of facilities, thereby limiting global competitiveness. The company also expressed concerns that small manufacturers, in particular, could be more vulnerable to price increases.

WIA Machine Tools also stressed the irreplaceable nature of machine tool production and its positive impact on job creation in the United States. The company stated, "Machine tool transactions support continuous and long-term service relationships, which create and maintain skilled U.S. jobs." It also warned that "if higher acquisition costs lead to a decrease in machine tool sales, this would negatively impact domestic service and support activities."

Hyrobotics Corporation, the U.S. subsidiary of Hanyang Robotics, submitted its comments earlier on March 19, directly emphasizing the value of Korean companies and cooperation with the United States. Hanyang Robotics was acquired earlier this year by the industrial robot company Nau Robotics. In its submission, Hanyang Robotics argued, "Korea's industrial policy is increasingly focused on innovation, supply chain resilience, and the development of high value-added technologies, rather than simply expanding manufacturing based on production volume."

The company went on to urge the USTR to "distinguish between unfair trade practices that distort global markets and the policies of allied countries like Korea, which pursue capacity adjustment, technological advancement, and mutually beneficial industrial cooperation, and to apply Section 301 measures with caution." It also highlighted that Korea operates within a rules-based, market-oriented economic system and has demonstrated a firm commitment to the principles of fair trade, transparency, and international cooperation as a longstanding U.S. ally. The company further argued that imports of Korean-made equipment have a net positive effect, enhancing rather than restricting U.S. competitiveness.

A representative from Nau Robotics also stated, "Due to the supply structure to automakers such as Hyundai Motor, the immediate impact of tariffs is limited, but the burden of operating the U.S. entity will inevitably increase," adding, "We plan to specify our response measures after experiencing the actual impact this year."

A Look at the Companies That Submitted Comments... Requests from the U.S., Europe, Taiwan, and More

Yeo Han-gu, Head of Trade Negotiations at the Ministry of Trade, Industry and Energy, held a meeting with Katherine Tai, United States Trade Representative (USTR), at the 14th Ministerial Conference (MC-14) held in Yaoundé, Cameroon, on the 27th of last month (local time). Photo by Yonhap News.

The USTR has launched investigations related to manufacturing overcapacity and overproduction in 16 economies, including Korea, and is also investigating 60 economies concerning non-compliance with import bans of goods produced with forced labor.

Among the investigated countries, individuals, companies, and organizations from various countries such as Japan, Taiwan, and Europe have submitted comments to the USTR. In particular, a high proportion of these requests came from companies in the industrial machinery and robotics sectors. In addition to Korean companies like WIA Machine Tools and Hanyang Robotics, organizations such as the Japan Machine Tool Builders' Association (JMTBA) and German plastic injection molding machine manufacturer ARBURG voiced their positions. U.S. specialty chemicals manufacturer Cabot Corporation, German solar inverter company SMA, and global packaging company Sealed Air were among the many chemical, raw material, and energy companies submitting comments. Consumer goods companies in textiles and footwear also made submissions.

Separately, 15 organizations requested to attend the public hearings. Most of these requests came from major U.S.-based associations. The Aluminum Association, the Steel Tube Institute, the Energy Workforce & Technology Council, and the Footwear Distributors and Retailers of America (FDRA) are among those that have requested to participate in the hearings.

Within the industry, there is analysis that, considering recent remarks by USTR representative Jamieson Greer, the possibility of tariff adjustments is increasing. In a recent interview with Bloomberg, Greer avoided giving a definitive answer to whether tariffs on China imposed under Section 301 would be rolled back, stating that "the outcome cannot be predicted and will be determined through legal procedures and investigations." On this, Shin Wonkyu, Senior Research Fellow at the Korea Economic Research Institute, interpreted, "After the Trump administration's Section 301 was deemed in violation of the International Emergency Economic Powers Act (IEEPA), there is intent to ensure legal stability, and thus practical and legal procedures could become increasingly important going forward."

However, as of two days before the deadline, with only two out of 86 submissions coming from Korean companies, it appears that Korean companies have been somewhat passive in expressing their opinions. This is interpreted as a kind of "waiting game," considering the need to focus on encouraging production and investment in the U.S. and the ongoing government-led diplomatic negotiations.

Accordingly, there are calls within the industry for both government and private sector strategies to be established and for more active submission of opinions, in order to minimize the application of tariffs before and after the public hearings. Jang Sang-sik, Director of the International Trade and Commerce Research Institute at the Korea International Trade Association, said, "As in the recent case where changes to Section 232 tariffs on steel, aluminum, and copper derivatives in the U.S. have reduced burdens for our companies, there is also room for the situation to change. We need to continue to emphasize that Korea's oversupply is different from that of China and that Korean companies contribute to U.S. industry."

This content was produced with the assistance of AI translation services.