US Proposes 0% to 4.32% Anti-Dumping Rates on Korean Power Transformers

United States proposed on Nov. 2, 2026 keeping anti-dumping rates of 0% to 4.32% on four Korean transformer makers.

On Nov. 2, 2026, the U.S. Department of Commerce proposed anti-dumping rates of 0% to 4.32% on Korean large power transformers.

The notice gives preliminary results of a yearly review of the anti-dumping duty order on these transformers¹. It covers shipments that entered the United States between Aug. 1, 2024 and July 31, 2025¹.

In short, the rates match those set in August 2026 for the year before. Transformers from HD Hyundai Electric and Iljin Electric would face no anti-dumping duty, while LS Electric and Hyosung would pay 4.32%.

What did Commerce decide on Korean transformers?

An anti-dumping duty is an extra import tax on goods sold abroad below their normal price. Commerce checks each year whether Korean makers sold large power transformers in the United States below that normal price. This check is called an administrative review.

In this review, Commerce found that HD Hyundai Electric Co., Ltd. and Iljin Electric Co., Ltd. did not sell below normal value during the review period¹. Both companies received a dumping margin of 0.00%¹. A dumping margin is the gap between the normal price and the U.S. sale price, shown as a share of the price.

Two other makers were not examined one by one. Commerce gave LS Electric Co., Ltd. and Hyosung Heavy Industries Corporation a margin of 4.32% each¹. The results are preliminary, so they can still change before the final results.

Which companies does the Korean transformer review name?

The notice lists four producers or exporters with these preliminary margins¹:

• HD Hyundai Electric Co., Ltd.: 0.00%
• Iljin Electric Co., Ltd.: 0.00%
• LS Electric Co., Ltd.: 4.32%
• Hyosung Heavy Industries Corporation: 4.32%

Commerce picked Hyundai and Iljin as the "mandatory respondents" on Jan. 29, 2026¹. These are the companies whose sales and costs Commerce studies in detail. The other two companies take a rate based on that work, as explained below.

Which transformers are covered by the order?

The order covers large power transformers from Korea¹. The August 2026 final results describe the goods in more detail. They are large liquid-cooled power transformers, known in the order as liquid dielectric power transformers².

The order covers units with a top power capacity of at least 60,000 kilovolt amperes, which equals 60 megavolt amperes². It covers them whether they are assembled or unassembled, complete or incomplete². Smaller transformers fall outside the order.

The full description of the goods sits in Commerce’s decision memorandum, a longer document filed with the notice¹.

Why do LS Electric and Hyosung get 4.32%?

US trade law normally sets a rate for companies not examined one by one from the rates of the examined companies¹. But it leaves out rates that are zero or very small, below 0.5%¹. In this review both examined companies came out at zero.

When that happens, the law lets Commerce use "any reasonable method" to set the rate¹. Commerce chose to keep the rates already in effect for the companies it did not examine¹. That rate is 4.32%, set in the previous review.

In the August 2026 final results, Commerce gave Hyosung and LS Electric 4.32% each². It said that margin "reflects the dumping behavior of these companies"². In that earlier review, Commerce had also first proposed keeping the existing rates before it settled on 4.32%².

How do the new rates compare with the last review?

The preliminary rates are the same as the final rates for the previous review year. That review covered shipments from Aug. 1, 2023 to July 31, 2024, and its results were published on Aug. 14, 2026². It also gave Hyundai and Iljin 0.00% and LS Electric and Hyosung 4.32%².

There was one difference in method last time. Commerce changed its margin calculations for Iljin between the preliminary and final results of that review². It also changed the margins given to the companies not examined². The same kind of change is possible in this review before it becomes final.

Makers not named in any review keep a different rate. For all other producers and exporters, the cash deposit rate stays at 22.00%¹. This is the "all-others" rate set in the first investigation of the case¹.

What changes for transformer importers?

For now, nothing changes at the border. The new cash deposit rates start only with the final results of this review¹. A cash deposit is an estimated duty an importer pays to U.S. Customs and Border Protection (CBP), the border agency, when goods enter.

After the final results, the deposit rules will work this way¹:

1. The four companies named will pay the rate set in the final results.
2. A rate below 0.50% counts as too small, so the deposit will be zero.
3. Other companies already reviewed keep their rate from the latest review in which they took part.
4. All other makers and exporters pay 22.00%.

The final duty owed on each past shipment is also fixed by the final results¹. For Hyundai and Iljin, if the final margin is zero or very small, CBP will clear the entries without anti-dumping duties¹. For LS Electric and Hyosung, Commerce will use the rate set for them in this review¹.

Some transformers made by Hyundai or Iljin may reach the United States through a trader. If the maker did not know the goods were going there, CBP will charge the 22.00% all-others rate. This applies when the trader has no rate of its own¹.

What must importers file before duties are settled?

The notice reminds importers of a duty paperwork rule¹. Each importer must file a certificate on reimbursement of anti-dumping duties before CBP settles its entries. The certificate states whether the foreign maker paid back the importer’s duties.

If an importer does not file it, Commerce may assume the duties were paid back¹. Commerce can then charge double anti-dumping duties on those entries¹. This applies to entries made during the review period of Aug. 1, 2024 to July 31, 2025.

How did the government shutdown delay the review?

Commerce started this review on Sept. 25, 2025, after timely requests from parties¹. The order itself dates from Aug. 31, 2012¹.

A U.S. federal government shutdown then slowed the work. On Nov. 14, 2025, Commerce pushed back all case deadlines by 47 days¹. On Nov. 24, 2025, it added 21 more days to clear a backlog of filings made during the shutdown¹. On July 9, 2026, it moved the deadline for these preliminary results to Oct. 30, 2026¹.

The notice was signed on Oct. 28, 2026¹. It was published in the Federal Register, the U.S. government’s daily journal, on Nov. 2, 2026¹.

When will the final transformer rates come?

Commerce will share its calculations with the parties within five days of publication¹. It also plans to check, or verify, the information it used before the final results¹.

Parties can send written comments, called case briefs, no later than seven days after the last verification report¹. Replies to those comments are due five days after that¹. Parties can ask for a hearing within 30 days of publication¹. All filings go through ACCESS, Commerce’s online filing system¹.

After the final results, Commerce will send duty instructions to CBP no earlier than 35 days after they are published¹. If someone files a timely court case at the U.S. Court of International Trade, CBP will hold the entries for a while¹.

Key points on Korean large power transformers

The table sums up the preliminary review.

Until the final results, importers keep paying the deposit rates now in force. These are the same 0.00% and 4.32% rates set on Aug. 14, 2026, so the preliminary results add no new cost at the border².

Sources

1. ↩ AGENCY: https://www.federalregister.gov/documents/full_text/html/2026/11/02/2026-22343.html
2. ↩ Federal Register :: Large Power Transformers From the Republic of Korea: Final Results of Antidumping Duty Administrative Review; 2023-2024 https://www.federalregister.gov/documents/2026/08/14/2026-16663/large-power-transformers-from-the-republic-of-korea-final-results-of-antidumping-duty-administrative