Seoul: South Korean steel shares declined Monday as the U.S.’ plans to impose an additional 25 percent tariff on all steel and aluminum imports spooked investors. U.S. President Donald Trump said on Sunday (U.S. time) he will announce the new metal tariffs the following day. He didn’t provide any details about the steel and aluminum duties.
According to Yonhap News Agency, leading steelmaker POSCO Holdings fell 0.84 percent to 237,000 won, while its local rivals Hyundai Steel Co. and Dongkuk Steel Mill Co. retreated 2.03 percent and 3.77 percent, respectively. The broader Korea Stock Price Index (KOSPI) slipped 0.03 percent to 2,521.27. The Korean steelmakers said they are closely monitoring what the new tariffs will be about.
“Trump has yet to release his executive order (involving the new tariffs). We will be able to come up with countermeasures depending on the tariffs’ details,” a POSCO official told Yonhap News Agency. Trump had imposed tariffs of 25 percent on steel and 10 percent on aluminum imports during his first four-year term that ended in 2021. But the first Trump administration had granted some trading partners, including South Korea, duty-free exemptions, in exchange for import quotas, which allowed Seoul to ship 70 percent of its three-year average shipments of steel and aluminum products to the U.S. with no additional tariff.
The country exported 28.35 million tons of steel products last year, with 2.77 million tons shipped to the United States, according to the Korea Iron and Steel Association.