Washington: U.S. President Donald Trump announced plans to double tariffs on foreign steel imports to 50 percent, effective next week, intensifying global concerns among steelmakers.
According to Yonhap News Agency, Trump confirmed the tariff increase from 25 percent to 50 percent via a post on X, stating that the move aims to further secure the domestic steel industry. The President also took to his Truth Social platform to share that the tariff hike will take effect on June 4, emphasizing the positive impact he believes it will have on American steel and aluminum workers, aligning with his broader trade policies.
This decision follows recent legal challenges, as a trade court deemed some of Trump's reciprocal tariffs illegal, a ruling temporarily blocked by an appeals court. The initial 25-percent tariffs were implemented in March as part of Trump's strategy to reduce trade deficits and bolster U.S. manufacturing.
Data from March revealed a significant decline in U.S.-bound steel exports from Seoul, dropping nearly 19 percent year-on-year to $340 million. The exact impact of the tariffs on Korean steel exports remains uncertain due to pre-arranged transactions, but the influence is palpable.
In response, Korean steelmakers are exploring strategies to mitigate the tariffs' effects. Hyundai Steel Co. has announced plans to invest $5.8 billion in constructing an electric arc furnace-based steel mill in Louisiana by 2029, marking its first overseas production facility.