Seoul: South Korea’s industry ministry held an emergency meeting Monday to assess the possible impact on local businesses from the United States’ plan to impose a 25 percent tariff on all steel and aluminum imports. The Ministry of Trade, Industry and Energy conducted the meeting with officials from major local steel companies, including POSCO Holdings Inc. and Hyundai Steel Co., to discuss responses to the proposed U.S. tariffs, according to ministry officials.
According to Yonhap News Agency, earlier in the day, U.S. President Donald Trump announced his intention to impose a new 25 percent tariff on all steel and aluminum imports into the U.S. This development has raised concerns that South Korean companies could face significant challenges from the anticipated U.S. tariffs, unlike previous instances where the Trump administration targeted Canadian, Mexican, and Chinese goods.
South Korea accounts for about 13 percent of U.S. steel imports, as per data from the Korea International Trade Association (KITA). In 2018, Trump had imposed a similar 25 percent tariff on all steel imports to the U.S. citing national security concerns. However, at that time, the U.S. waived the tariffs on South Korean steel products in exchange for a yearly import quota of 2.63 million tons, which constituted around 70 percent of Seoul’s average export volume between 2015 and 2017.
During the emergency meeting, Deputy Trade Minister Park Jong-won stated that the government plans to “proactively” address the changes in U.S. trade policy by leveraging “all available networks” and working closely with related industries. Officials at local steelmakers, including Hyundai Steel and POSCO Holdings, emphasized their vigilance in monitoring the situation due to the uncertainties surrounding U.S. trade policies.
Hyundai Steel had previously considered building a steel mill in the U.S. before Trump’s recent announcement. The local automotive and home appliances sectors are also closely observing Trump’s move, as they could be impacted by tariffs on steel and aluminum.
Market analysts suggest that tariffs on South Korean steel and aluminum could lead to increased prices for Korean vehicles and home appliance products, as they rely on local steel and aluminum. For example, Hyundai Steel supplies steel products from its plant in South Korea to Hyundai Motor Group’s car manufacturing facilities in the U.S.