South Korea to minimise impact of 50% tariff on steel products, ministry says
[SEOUL] South Korea's Industry Ministry said on Monday (Jun 2) it will respond to the looming 50 per cent US tariff on steel products as part of its trade discussions with Washington in order to minimise the impact on industry.
US President Donald Trump said on Friday he planned to increase tariffs on imported steel and aluminium to 50 per cent from 25 per cent, ratcheting up pressure on global steel producers and deepening his trade war.
The ministry held an emergency meeting with officials from the country's major steelmakers, including Posco and Hyundai Steel, it said.
Shares of South Korean steelmakers lost ground on Monday, with Posco and Hyundai Steel falling 3 per cent and SeAH Steel Corp down 6.3 per cent in morning trade.
South Korea is the fourth-biggest exporter of steel to the United States, behind Canada, Mexico and Brazil last year, according to American Iron and Steel Institute data.
South Korea, a major US ally, has called for the exemption of tariffs on steel, autos and others items, during talks with the United States.
Seoul agreed in late April to craft a trade package by the end of the 90-day pause on Trump's reciprocal tariffs in July, but it has been difficult for negotiators to make big decisions due to a political leadership vacuum.
In late March, Hyundai Steel announced a plan to build a US$5.8 billion factory in Louisiana in response to US tariffs, but the factory will not open until 2029.
In April, Hyundai Steel's bigger rival Posco signed a preliminary deal to make an equity investment in the factory project. REUTERS
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