Seoul: South Korea will formulate a strategic response by the end of this month to address the United States' imposition of a 25 percent tariff on all steel imports, as announced by the country's industry minister. The initiative aims to safeguard the Korean steel industry from the economic impact of these tariffs.
According to Yonhap News Agency, Industry Minister Ahn Duk-geun disclosed this timeline during a meeting with prominent officials from major steelmakers such as POSCO Group and Hyundai Steel Co. He emphasized that the government will "sternly respond to any attempts of unfair trade activities," highlighting the commitment to protect the domestic steel sector.
The tariffs, initially imposed by the Donald Trump administration, apply a 25 percent duty on all steel imports, including those from South Korea. Additionally, tariffs have been levied on 87 steel and aluminum derivative products, and duty-free quotas for steel imports from South Korea and other countries have been lifted.
In 2018, the Trump administration had previously exempted South Korea from these tariffs in return for an annual import quota of 2.63 million tons, representing approximately 70 percent of South Korea's average steel export volume from 2015 to 2017. However, the recent changes have revoked these exemptions, necessitating a reevaluation of South Korea's trade strategy.
During the meeting, Ahn assured the steel companies that the government will enhance support measures for the industry and exert maximum efforts in negotiating with the U.S. on this issue. He also encouraged the companies to factor in the increased uncertainties as a constant variable and to proactively reassess their investment and export strategies, particularly focusing on high-value products.