Seoul: POSCO Holdings Inc., South Korea’s leading steelmaker, announced that it signed an initial agreement with U.S. steelmaker Cleveland-Cliffs Inc. last month, aimed at bolstering its presence in the U.S. market amidst growing concerns over U.S. tariffs.

According to Yonhap News Agency, the strategic partnership was confirmed following Cleveland-Cliffs’ announcement of the deal in a press release. The two companies formalized their collaboration on September 17 through a memorandum of understanding (MOU). This agreement is set to help POSCO expand its U.S. customer base while ensuring compliance with U.S. trade and origin requirements.

The companies anticipate finalizing the agreement in the fourth quarter of 2025 or the first quarter of 2026. Cleveland-Cliffs’ executive vice president and chief financial officer, Celso Goncalves, expressed optimism about the partnership, emphasizing the shared vision for a stronger industrial base in both countries. POSCO Holdings President and CEO Lee Ju-tae highlighted the opportunity to supply American-made steel to existing customers and reinforce established relationships in the U.S.

While specific details of the partnership remain undisclosed, POSCO is reportedly considering acquiring a stake in Cleveland-Cliffs. This agreement aligns with POSCO Group’s earlier announcement in April regarding its investment in Hyundai Steel Co.’s U.S. steel mill project, a strategic move to navigate the 50 percent tariff currently imposed by the U.S. on steel imports from South Korea.