Trump's 50% steel tariff deals blow to Korean exporters
New US levy threatens 13% of Korea's steel exports, prompting emergency talks in Seoul
In yet another tariff storm last week, US President Donald Trump shocked the world once more with plans to double tariffs on imported steel and aluminum from 25 percent to 50 percent, starting Wednesday.
Speaking from a US Steel mill in the Pittsburgh suburbs, Trump described the move as a deal that would 'secure' the American steel industry, one that 'nobody's going to get around.'
The tariff escalation is set to deliver another major blow to Korean exporters, the fourth-largest steel supplier to the US. In 2024, exports to the US accounted for 13 percent of Korea's total steel exports.
'At a time when exports to the US are barely holding up following the 25 percent tariff, an additional 25 percent will severely undermine the competitiveness of Korean companies,' said an industry insider.
In response, Korean trade officials and steelmakers, including Posco Holdings and Hyundai Steel, gathered Monday for an emergency meeting convened by the Ministry of Trade, Industry and Energy in Seoul to assess the fallout.
The agenda centered on evaluating the potential impact of the tariff hike on the industry and formulating future response strategies.
While closely monitoring the situation through its networks with US diplomatic offices and the US subsidiaries of Korean companies, the ministry has pledged to implement swift responses to 'minimize' the impact on Korea's steel sector.
Some analysts, however, suggest the damage may be limited.
According to a Seoul-based market researcher at Daol Investment & Securities, even after the initial 25 percent tariff, US prices for hot-rolled steel remained high. 'The full impact of the new hike depends on how much US steel prices rise in response,' the researcher said.
That, in turn, may increase the competitive edge of companies like Hyundai Steel. The company is committed to a $5.8 billion investment plan to build an electric arc furnace-based integrated steel mill in Louisiana by 2029, in partnership with Posco Group.
The tariff hike comes amid the US push to bolster its domestic steel industry, which constitutes the backbone of the nation, according to Trump.
Trump recently endorsed US Steel's $14 billion acquisition by Japan-based Nippon Steel, a deal he had previously opposed on national security grounds. He said the partnership would create and save more than 100,000 jobs while keeping the American steelmaker under US control, though few details have been disclosed.
Although the Court of International Trade ruled last week against Trump's tariffs under the International Emergency Economic Powers Act, potentially hindering his use of punitive levies, it has no bearing on steel and aluminum tariffs.
Those instead fall under Section 232 of the Trade Expansion Act, which authorizes tariffs on national security grounds.
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