South Korea’s Ministry of Trade, Industry and Energy has announced proactive steps to address the upcoming 50% U.S. tariff on imported steel products. The government is committed to minimizing disruption to its domestic steel industry through continuous dialogue and trade negotiations with Washington.
The tariff hike, set to take effect this Wednesday, marks a significant change from the current 25% rate on steel and aluminum. South Korea, one of the United States’ top steel suppliers, has reaffirmed its intention to protect its export sector while preserving positive trade relations.
In response, the Industry Ministry convened an emergency session with key stakeholders in the steel sector to assess implications and develop a coordinated strategy. Among the participants were representatives from leading producers, reflecting the urgency and scope of the issue.
Despite the tariff environment, South Korean steel exports to the U.S. grew by 12% in April year-over-year, signaling strong demand and resilient market presence. Industry voices, however, cautioned that the elevated tariff may create pressure on exporters, especially if domestic steel prices in the U.S. do not rise accordingly.
To navigate this evolving trade landscape, Seoul is advocating for tariff exemptions on steel and other goods during ongoing discussions with U.S. officials. While a long-term trade package is under development, progress has been gradual amid domestic political transitions.
In a parallel development, South Korean firms have demonstrated a commitment to long-term investment in the U.S. market. Hyundai Steel’s recent $5.8 billion plan for a factory in Louisiana—expected to begin operations in 2029—underscores this strategy. POSCO has also shown support for the project through a preliminary equity investment agreement.
South Korea continues to position itself as a reliable trade partner, actively engaging in constructive dialogue while ensuring the stability of its industrial sectors.
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